First-quarter U.S. Internet display ad spending hit $2.7 billion for the first quarter--a 16.7% increase over the same period last year, TNS Media Intelligence reported yesterday.
The growth was a direct contrast to total media spending, which declined by 0.3% to $34.92 billion for the quarter, as measured by TNS.
Financial services was the leading category, with
spending of $488.7 million on Internet advertising for the period--up 51.2% over 2006. In addition, financial services marketers spent 23% of their total media online, making this the first time a
category (other than exclusively dot.com advertisers) has spent a plurality of its ad dollars online, said Jon Swallen, senior vice president of research for TNS.
In what may be a tipping point,
among the top 50 advertisers in all media, which represent about one-third of all advertising spending, the increase in Internet spending averaged 20%--outpacing the rate of growth for the overall
category.
"The rate of increase in their Internet budgets exceeded the overall growth of the Internet as a whole," Swallen said. "This is the first time I've seen the top 50 on the high side.
Whether the surge in the first quarter was a one-time aberration or the beginning of an ongoing trend remains to be seen."
Internet advertising across the board represented 7.7% of total media
spending.
Categories coming in below the average were automotive at 4.3% of total spend, pharmaceutical at 2.7% and national restaurants at 1.6%.
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| TOP 10 INTERNET DISPLAY ADVERTISERS - Q1 2007 | |
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| RANK | PARENT | QTR 1 2007 $ Millions | QTR 1 2006 $ Millions | % CHANGE: 2007 vs 2006 | |
| 1 | IAC/INTERACTIVECORP | 78.2
| 24.7 | 216.6% | |
| 2 | VERIZON COMMUNICATIONS INC | 49.5 | 18.8 | 163.3% | |
| 3
| EXPERIAN GROUP LTD | 48.7 |
28.9 | 68.5% | |
| 4 | E-TRADE FINANCIAL CORP | 43.6 | 29.1 | 49.8% | |
| 5 | APOLLO GROUP | 43.0 | 20.4 | 110.8% | |
| 6 | NETFLIX INC | 42.8 | 38.9 | 10.0% | |
| 7 | SCOTTRADE INC | 39.4 | 22.4 | 75.9% | |
| 8 | AT&T INC |
37.3 | 37.5 | -0.5% | |
| 9 | FMR CORP | 36.7 | 14.5 | 153.1% | |
| 10
| NATIONAL AMUSEMENTS INC | 34.4 |
11.6 | 196.6% | |
| TOTAL, TOP 10 | 453.6 | 246.8 | 83.8% | |
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| Copyright 2007. TNS
Media Intelligence | | | | |
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INTERNET DISPLAY ADVERTISING EXPENDITURES BY CATEGORY |
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| CATEGORY | QTR 1 2007 $ Millions | QTR 1 2006
$ Millions | % CHANGE: 2007 vs 2006 |
| FINANCIAL SERVICES | 488.7 | 323.2 | 51.2% |
| RETAIL OTHER |
258.6 | 242.0 | 6.9% |
| INTERNET | 229.1 |
199.4 | 14.9% |
| MISC SERVICES
| 227.2 | 183.5 | 23.8% |
| MEDIA |
196.5 | 197.9 | -0.7% |
| TELECOM | 181.1 |
187.9 | -3.6% |
| COMPUTER
PRODUCTS | 120.0 | 106.1 | 13.1% |
| TRAVEL & TOURISM | 106.4 | 100.9 |
5.5% |
| EDUCATION | 81.4 | 71.3 | 14.2% |
| MISCELLANEOUS | 83.1 | 63.5 | 30.9% |
| AUTO, DOMESTIC | 78.7 | 41.7 | 88.7% |
| AUTO, NON-DOMESTIC | 70.1 | 42.7 |
64.2% |
| RETAIL DEPT STORES | 32.8 | 51.3 | -36.1% |
| GOVT & ORGANIZATIONS | 41.2 | 42.3 | -2.6% |
| AUTO OTHER | 41.3 | 42.0 | -1.7% |
| INSURANCE |
40.6 | 40.3 | 0.7% |
| DIET & FITNESS | 25.9 | 44.8 | -42.2% |
| GAMES
& TOYS | 23.2 | 47.3 | -51.0% |
| HOME AUDIO & VIDEO | 43.8 | 22.0 | 99.1% |
| MOTION PICTURES | 36.0 | 28.7 | 25.4% |
| REAL ESTATE | 30.0 |
34.3 | -12.5% |
| PHARMACEUTICALS
| 32.6 | 31.4 | 3.8% |
| FOOD PRODUCTS |
34.9 | 20.8 | 67.8% |
| DIRECT RESPONSE | 19.0 | 35.5 | -46.5% |
|
PERSONAL CARE PDTS | 33.7 | 16.3 | 106.7% |
| NON RX REMEDIES | 27.2 | 19.0 | 43.2% |
| RETAIL HOME & BUILDING | 23.0 | 14.0 |
64.3% |
| RESTAURANTS | 20.1 | 9.1 | 120.9% |
| BEVERAGES ALCOHOLIC | 13.0 | 5.7 | 128.1% |
| APPAREL | 12.0 | 5.8 | 106.9% |
| BEVERAGES NON ALCOHOLIC | 9.1 | 8.6 |
5.8% |
| CANDY & SNACKS | 8.4 | 4.0 | 110.0% |
|
BUILDING MATERIALS | 5.3 | 7.0 | -24.3% |
| HOUSEHOLD PRODUCTS | 7.5 | 4.6 | 63.0% |
| RETAIL FOOD STORES | 6.8 | 4.8 |
41.7% |
| PETS | 4.7 | 5.1 | -7.8% |
|
SPORTING GOODS | 2.6 | 3.9 | -33.3% |
| HOME FURNISHINGS | 2.5 | 3.8 | -34.2% |
| OFFICE EQUIPMENT | 3.7 | 1.9 |
94.7% |
| PETROLEUM | 2.4 | 1.0 | 140.0% |
| SMOKING MATERIALS | 0.7 | 2.4 | -70.8% |
| Grand Total | 2,704.8 | 2,317.7 | 16.7% |
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| Copyright 2007. TNS Media Intelligence | | |