Online Advertising is Back and Stronger Than Ever

Larry Kramer is the Founder and Former CEO of CBS Marketwatch.com. He was the first president of CBS Digital (NYSE:CBS) and sits on the Boards of Discovery Communications, Inc. (NASDAQ:DISCA), American Media Inc., Freedom Communications, Inc., Answers Corp., Black Arrow Inc., and Harvard Business School Publishing. He is the author of the book C-Scape: Conquer the Forces Changing Business Today and runs a blog by the same name.

Online Advertising got back on track in 2010, showing 15% growth to $26 billion. The industry shot past newspapers to become the second largest ad medium, behind only television. Of equal significance is the fact that display advertising grew as a percentage of online, taking share from search, which remains the largest form of digital advertising, according to the Internet Advertising Bureau.

The news is good for Digital Publishers. It appears 2009, the first down year in advertising for the industry, was a recession-driven outlier, and the 2010 growth brought the industry back to where it would have been had there been no recession. The largest categories of advertisers remain Retail (NYSE:XRT), Telcom, Financial Services (NYSE:XLF) and Auto (NYSE:GM) (NYSE:TM) (NYSE:F).

Not surprisingly, performance based advertising grew as a share of overall, with cpm-based pricing dropping from 37% to 33% of all advertising. Internet advertisers continue to gravitate toward measurable success.

 

Larry Kramer is the Founder and Former CEO of CBS Marketwatch.com. He was the first president of CBS Digital (NYSE:CBS) and sits on the Boards of Discovery Communications, Inc. (NASDAQ:DISCA), American Media Inc., Freedom Communications, Inc., Answers Corp., Black Arrow Inc., and Harvard Business School Publishing. He is the author of the book C-Scape: Conquer the Forces Changing Business Today and runs a blog by the same name.