Online Ad Spend: $42 Billion by 2011

My friend Michelle sends over this little tidbit — Looks like no one at emarketer is looking for a recession anytime soon:

 "Advertisers are well on the way to spend
$21.4 billion on the Internet in 2007, says eMarketer’s new online ad spending
report. By 2011, spending on advertisements online is expected to reach $42

One big trend is that the nation’s largest advertisers are shifting more of
their budgets from traditional media to the Internet, according to eMarketer’s


Online Ad Spend to Hit $42 Billion by 2011
eMarketer, NOVEMBER 7, 2007

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  1. peter from oz commented on Dec 13

    bon soir mes amis
    Dec. 13 (Bloomberg) — The interest rates banks charge each other for short-term loans in Europe failed to decline from the highest levels in seven years a day after central banks joined forces to break a logjam in money markets.

    The cost to borrow for three months remained at 4.95 percent, the British Bankers’ Association said today. That’s 95 basis points, or 0.95 percentage point, more than the European Central Bank’s benchmark interest rate, compared with 57 basis points a month ago. The difference averaged 25 basis points in the first half of the year, before losses on securities linked to U.S. subprime mortgages contaminated credit markets.

    The highest short-term rates since December 2000 suggest that the first coordinated central bank action since the Sept. 11, 2001, terrorist attacks may not be enough to revive interbank lending. The cost of borrowing dollars fell 7 basis points to 4.99 percent, about half what was anticipated, based on prices of Libor futures contracts.

    “It’s not going to help us find an exit to this crisis,” said Cyril Beuzit, head of interest-rate strategy at BNP Paribas SA in London. “These measures aren’t going to address the root cause of the crisis. Banks are still reluctant to lend money to each other because there are serious concerns about potential further bad news.”

  2. peter from oz commented on Dec 13

    dow and s&p hanging by a thread
    looks like a real bad Friday coming up for you
    hope you didn’t promise your nearest and dearest too much from Santa
    but wait a minute Virginia there is a Ben and Paulson
    rgds pcm

  3. Rob Dawg commented on Dec 13

    Doubling ad spending in 4 years? Not. Would you stand for double the ads you see now? Do you think the price per eyeball is going to hold steady? Do you think the ability to target specific eyeballs is not going to improve? Fewer ads at lower prices with better targeting. Better results maybe but more revenue at least not without much more in expenditures)? No way.

  4. SINGER commented on Dec 13

    anyone have thoughts on VCLK…

  5. Austin commented on Dec 13

    Quick! Naively project current trends forward! This always works!

    I agree; I read these with quite a bit of skepticism.

  6. E. Cartman commented on Dec 13

    Advertising doesn’t work unless the audience is captive and deprived of control. Online advertising is about as far away as you can get from that.

    If those numbers include buying from data hounds masquerading as advertisers (adware to get cookies onto users’ hard drives and track their click habits), then I could see it. Otherwise, that estimate seems wildly optimistic. Getting sophisticated profiles of large samples has many uses beyond advertising.

  7. mvm commented on Dec 13

    The internet audience is growing rapidly throughout the world – it makes perfect sense that the online advertising budgets would follow to increase as advertisers grow more cost concious and shift their budgets to the most effective campaigns. High quality targeted online ads have provided by far the best ROI in my experience in different media.

  8. Muckdog commented on Dec 13

    I still don’t understand online advertising. Who reads those ads? At most, when one pops up (pops “over”) I just scan for the close button. Otherwise I pay no attention to the stuff in the margins…

  9. 2and20 commented on Dec 14

    I’m always tempted to short Google on the basis that it is now one of the world’s largest advertising companies…and advertising never does well in a recession. But there has never been even a blip in their numbers…yet.

  10. cm commented on Dec 14

    Muckdog: I think the idea is that even when you disregard the ads they somehow stick with repeated exposure, skewing your future choice biases.

    So unless you are paying some attention and purposely avoid advertised products …

  11. BigMary commented on Dec 15

    i m buying google

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