Online Display Climbs Twice The Rate Of Overall Ad Economy, ISPs Boost Spending In Other Media

Spending for online display ads rose 12.6 percent in the first half of 2005, according to estimates released Tuesday by Nielsen Monitor-Plus. That rate, although more than double the 5.7 percent growth in overall ad spending, was lower than projections by other online ad forecasters.

JupiterResearch forecast earlier this month that spending for online display ads would reach $5.1 billion this year, up around 25 percent from last year's $4.1 billion. Other researchers and analysts anticipated even higher numbers. Goldman Sachs predicted that online advertising overall (including search) would soar by 28 percent for the year; Forrester Research predicted that all online advertising would climb by 23 percent this year; and research firm eMarketer predicted a 34 percent increase.

Data from Nielsen Monitor Plus also shows that America Online spent far and away more money on national TV advertising than rival Internet service providers. AOL paid around $153 million in the first six months of this year to advertise its service's virus safety and security features on television--including the major networks, cable, syndication, and spot TV. The second-biggest spender among ISPs was PeoplePC, which paid around $97 million to promote its $10.95 a month dial-up service on television.



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