• by Paul Gough , November 21, 2003

In another sign that online advertising is back or strongly on its way, a survey released Thursday has found high double-digit growth in advertising revenues among members of the Online Publishers Association.

Third-quarter ad revenues rose an average of 45.9 percent among 26 online publishers compared to the same three-month period in 2002. Ad revenues increased 38.2 percent in the first nine months of 2003 compared to January through September 2002.

Among the members of the New York-based OPA are CBS MarketWatch, CNET Networks, MSNBC.com, New York Times Digital, Forbes.com, and The Wall Street Journal Online.

Average total revenues jumped by 44 percent in the third quarter compared to 2002, and the year-to-date increase was 35 percent.

While this is good news for the online industry, top Web publishers are being realistic about current conditions. Michael Zimbalist, executive director of the OPA, said the industry still has a way to go before it reaches the high water mark of 2000's $8 billion in online advertising revenues.

"There's still a hill to climb," Zimbalist told MediaDailyNews Thursday afternoon.

But things are different compared to 2001, the year the Internet ad bubble burst. The gains this time around are being built on a more solid foundation than the dot-com boom. Publishers are now no longer in danger of being rendered extinct by another bubble burst, Zimbalist noted. The advertisers that are committing to online campaigns are blue chip companies.

Forbes.com was one of the Online Publishers Association members that participated in the survey. Unlike some OPA members, who are publicly traded, Forbes is privately held and doesn't report revenue data. But Jim Spanfeller, president and chief executive officer of Forbes.com, said that Forbes.com would end the year with advertising revenues closer to 60 percent higher than 2002.

That figure compares to a 2001 that dipped along with everyone else in the industry, and a 2002 that was better. Spanfeller said 2003's revenues would be higher than any other year, even the boom year of 2000.

Spanfeller said he felt that advertising dollars were following the eyeballs, as advertisers find television costing more for less. He said that categories were up across the board, and that steady clients were spending more, while others who were testing last year are now rolling out to real campaigns and other clients have been testing for the first time in a while.

He said that the future looked good.

"I think the Web is going to be a bigger and bigger player," Spanfeller said.

Lorraine Ross, vice president of advertising at USATODAY.com, said that there's been a noticeable uptick in advertising that the Web site has seen all year long. Strong categories have been technology, travel, and entertainment.

Ross said she's cautiously optimistic for an overall recovery, although she notes that there is still some volatility in the marketplace.

"We're walking into 2004 stronger than we did 2003, so that's a good thing," Ross said.