Internet advertising levels are strong, despite dire projections from financial analysts that sent portal stocks tumbling during the past few months. Online ad revenue in the US reached $US2.1 billion in the second quarter, up almost 9 per cent over the first quarter, according to data released recently by the Internet Advertising Bureau and Pricewaterhouse-Coopers.
April's stock market correction forced many online companies, which still represent as many as three-quarters of Net advertisers, to reassess their marketing expenditures. But analyst Pete Petrusky of Pricewaterhouse-Coopers, says "traditional advertisers have stepped in to fill the gap".
The IAB found that as a proportion of ad spending, banners are still falling through the floor. In the second quarter of 1999, banners represented 59 per cent of total ad spending, according to the IAB. In the second quarter of this year, banner-ad spending accounted for only 50 per cent. E-mail advertising lagged, as well, falling from 3 per cent to 2 per cent.
Classified advertising, however, saw a bump up from 4 per cent to 7 per cent of overall Net ad spending. Just a year earlier, classifieds weren't even on the online ad-spending map.