• March 9, 2005

Characterizing the online ad marketplace as "still in early innings," a top Wall Street securities firm indicated the medium still has tremendous upside as major marketers begin reallocating traditional media ad budgets, or add incremental ad dollars as part of integrated media plans. The report, which was based on highlights from the opening day of Merrill Lynch's Advertising & Marketing Services Conference, also revealed that the online search marketplace remains vital and that first quarter keyword pricing is "stable with the exception of retail, which ran up seasonally in Q4." Merrill Lynch analysts said the disclosure "would seem to refute some of the recent bear sentiment surrounding Yahoo!," which the firm has given a "buy" rating. -- JM