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Direct & Integrated Marketing Roundtable

Sunday, May 3, 2009

Please keep internet ad spend in perspective

I know we are all excited about how video ad spend is growing quickly, but we need to keep it in perspective regarding all other advertising expenditures. I hate to tell you but digital video ad spend actually represents less than 1% of total ad spend in the US. In fact Internet ad spend in total (search, banner, video, etc.) only represents 17% of 2008 ad spend in total.

What is number one you ask? It is television of course coming in at 60% of all ad spend.

Total ad spend for 2008 was $136.8 billion dollars. According the Nielsen Co. and the IAB, $82 billion was on TV, $23 billion was on the internet and the remaining $31 billion was for print, radio, etc.

Regading the $23 billion of internet ad spend, $10.5 billion was on search, $4.9 billion was on banner ads and $.7 billion was for digital video.



Procter & Gamble is the number one advertiser for 2008. They account for $2.8 billion of all ad spend.

For the full Nielsen report see:
http://blog.nielsen.com/nielsenwire/consumer/nielsen-reports-2008-us-ad-spend-down-26/

For the IAB report visit: http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-033009

Perry

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