Despite decline in revenue, online advertising gains market share.
Even though online advertising revenues are forecast to slip by 0.5% in 2009 to a total of $24.55 billion, this slight decline represents a better outlook than for traditional advertising, which has seen a more drastic falloff in revenues. As a result, online advertising is expected to increase its share of overall advertising spending, advancing from 10.6 percent to 12.2% this year.
Twitter usage among adults continues to accelerate.
eMarketer.com estimates that the number adult Internet users who access Twitter at least monthly could rise to 18 million this year, up from 6 million last year. They project that this figure may rise to 26 million in 2010. In terms of audience share, this year's 18 million figure represents 11.1% of adult Internet users. If the 26 million figure for 2010 is achieved, it would represent 15.5% of adult Internet users.
Online advertising projected to resume growth in 2011, while mobile enjoys stronger growth.
Research firm the Yankee Group projects that online advertising revenue should start growing again in 2011, after two fairly flat years in 2009 and 2010. Meanwhile, mobile advertising, while just a fraction of online advertising, is expected to enjoy rapid growth throughout the period.
Social media sites now account for over 20% of display ad impressions.
As of July, 2009, social media sites accounted for 21% of all display ad impressions, according to comScore. These figures include nearly 69 billion impressions to an audience of over 129 million unique visitors. MySpace led the way in total display ad impressions, though Facebook's ads reached a larger audience of unique visitors.
Display ads succeed by leading a double life.
One appeal of display ads is the ability of advertisers to measure consumer reaction by how many people click on those ads. However, a recent study showed that those ads also work in a way beyond eliciting an immediate reaction. Display ads were shown to be slightly more effective than TV ads in affecting consumer buying behavior, and a far greater percentage of display ads than TV ads had a positive impact.
Yahoo! earns slight increase in share of a growing search market.
Nielsen's search data showed Yahoo gaining a slight amount of market share from June to July, while Google lost ground. Google was still the clear leader, dropping from 66.1% to 64.8%, while Yahoo! climbed from 16.2% to 17.1%. Perhaps of most significance was the fact that both gained in total number of searches, with Yahoo!'s market share increase coming because it grew at a faster rate.
Year-over-year online ad spending drops in second quarter of 2009.
According to a report by IDC, online ad spending dropped by 5.9% in the second quarter of 2009, compared with the same quarter in 2008. The US suffered a slightly higher decline in ad spending, with a year-over-year drop of 7%. Search ads were least affected by the decline, as a result of which Google was the only publisher in the US to post an increase in ad spending.