Aplus.net Blog

Echoing the trends we’ve been reporting on here at the Aplus.net Blog recently — namely, that online advertising continues to increase despite, and possibly even because of, the sluggish state of the overall economy — a report issued earlier this month by the Interactive Advertising Bureau (IAB) states that online advertising has increased by more than 15 percent in the first half of 2008 (as compared to the same period in 2007).

The report, conducted independently by PricewaterhouseCoopers, covers the first six months of 2008. It reveals that Internet advertising revenues for these months were $11.5 billion, “setting yet another new half-year record that represents a 15.2 percent increase over the first half of 2007.”

Search and Display-related advertising continue to set records. Search revenues totaled almost $5.1 billion for the first six months of 2008, up 24 percent from the $4.1 billion for the same period in 2007. Display-related advertising totaled close to $3.8 billion for first six months of 2008, compared to the $3.2 billion reported for the same period in 2007, showing about a 19% increase. Display-related advertising includes Display Banner ads, Rich Media, Digital Video, and Sponsorship.

“Interactive advertising continues to demonstrate year over year growth as marketers and consumers increase their embrace of digital media,” said Randall Rothenberg, president and CEO of the IAB. “The essentially flat performance we see quarter to quarter reflects in part cyclical advertising trends. Compared to the trajectory in other media and in the general economy, interactive has outperformed because it delivers a level of accountability unmatched by any other advertising medium.”

Although this data is from the first half of 2008, when the current financial crisis wasn’t as severe as it is today, the basic conclusion is firmly in line with recent trends: As the economy weakens, and uncertainty grows, consumers are embracing online shopping more than ever because of the time and money it saves over traditional forms of shopping. (Indeed, it’s not much of a stretch to see some validation of this theory in the recent string of major brick-and-mortar store liquidations such as Mervyns and Shoe Pavilion.)

We are at a historic time, when basic human behavior is shifting in major ways. With this being the case, now is absolutely the time to get serious about your online business, if you haven’t already done so.

The IAB, or Interactive Advertising Bureau, is an advertising business group that represents hundreds of “leading interactive companies that actively engage in and support the sale of interactive advertising.” Click here to visit the IAB’s official website. To view the report quoted above, click here.