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Q: Banner ad sales figures industry wide ( Answered 5 out of 5 stars,   2 Comments )
Question  
Subject: Banner ad sales figures industry wide
Category: Business and Money > eCommerce
Asked by: tivoli-ga
List Price: $19.50
Posted: 30 Jun 2004 08:18 PDT
Expires: 30 Jul 2004 08:18 PDT
Question ID: 368132
I need to know how many dollars worth of banner ads were sold
in:

1994
1995
1996 etc, through the present

I realize finding the figures from the early
years may be tricky so I will accept 2002, 2003

If you have any sources that show growth of banner
ad sales that'd be great too. 

Time is of the essence.

Thanks.
Answer  
Subject: Re: Banner ad sales figures industry wide
Answered By: bobbie7-ga on 30 Jun 2004 09:42 PDT
Rated:5 out of 5 stars
 
Hi tivoli!

Below you will find the results of my research regarding banner ad
sales and growth.


2001   $9 billion
2000   $8 billion
1999   $4.5 billion

?While the International Data Corp. projects that banner ad sales will
hit $9 billion in 2001, up from $8 billion last year, that's a slow
jog compared with the previous year, which almost doubled 1999's $4.5
billion banner ads sold.?

?Part of the problem was that traditional banner ads, introduced in
1996, are awkward because of their long, thin shape, said Barry Parr,
director of e-commerce research for IDC, which tracks IT markets and
trends. "It's not an easy space in which to tell a story," he
explained.?

Internet World News: February 27, 2001
http://www.internetworld.com/news.php?inc=02272001c.html


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$8.2 billion in 2000
$4.6 billion in 1999

?Yes, banner advertising has declined as a percentage of overall
online advertising. Where banners once accounted for more than 70% of
all online ads, in 2000 they made up 47%, according to the latest
statistics from the Internet Advertising Bureau. One reason for the
drop is the growth in e-mail newsletter sponsorships, now at 28%.

But that 47% is still a significant amount, given that total online
advertising revenue was $8.2 billion in 2000, up from $4.6 billion in
1999, according to the IAB.?
http://www.bcentral.com/articles/enbysk/106.asp


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1994  0
2000  $8.2 billion

?Nevertheless, online advertising has grown from nearly nothing in
1994 to $8.2 billion in 2000.?

Advertising Survey & White Paper: July 2001
http://www.abanet.org/barserv/adsurvey/adsurvey.html


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Banner ad sales climb in 2002 

?Traditional advertisers, including automobile and consumer products
companies, bought a record number of Web ads, Nielsen//NetRatings data
show. The top 100 traditional advertisers bought 30% of all banner ads
last year, up from 15% in 2000.?   The Wall Street Journal
(subscription required) (3/19)
http://www.smartbrief.com/alchemy/servlet/encodeServlet?issueid=D0FFCF8A-3FD9-412B-980A-CA1FA4B60A41


-----------------------------------------------------------------------------


2003 $4.9 billion

?Revenue from Web-search advertising more than doubled to $2.3 billion
in 2003. Banner ads and other types of old-school Internet
advertising, down slightly, totaled $4.9 billion.?

CNET Networks, Inc
http://news.com.com/2100-1024_3-5213094.html

Online ad sales up almost 40 percent: May 26, 2004
http://www.rankforsales.com/n-as/583-seo-may-26-04.html


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Table: Online advertising spending, 2000-2007
Source: Media Life:  January 15, 2004
http://www.medialifemagazine.com/news2004/jan04/jan12/4_thurs/news4thursday.html


-----------------------------------------------------------------------------

Online ad spending

Geoff started his presentation off showing eMarketer's numbers for
estimated actual online ad spending from 1999-2002, along with
projections for 2003-2005. The numbers look like this:

1999: $4.6 billion 
2000: $8.2 billion 
2001: $7.2 billion 
2002: $6.0 billion 
2003: $6.3 billion 
2004: $6.8 billion 
2005: $7.2 billion 

?The projections for 2003 notably indicate an end to the decline that
began in 2001. A return to the peak levels of $8 billion reached in
2002 is not expected to occur until 2006. ?

Geoff Ramsey (CEO eMarketer) http://www.mediafact.nl/comments.php?id=A1751_0_1_0_C


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Growth

?In 1999 and early 2000, when the world was buzzing about the promise
of Web media, most researchers guessed that banner ad sales would
explode. AdZone Research Inc. estimated that online ad sales would hit
$16 billion last year. But banners bombed: Just 0.3% of Web surfers
click on them. So ad revenue finished last year at $7.3 billion--10%
lighter than in 2000.?

PC Magazine: February 18, 2002 
http://www.pcmag.co.uk/News/1119880


-----------------------------------------------------------------------------
 

?The first banner ad appeared on Wired Magazine?s HotWired Web site in
1994. Since then, the use of banner advertising has exploded.  ?Online
advertising revenues vaulted to $1.2 billion in the third quarter of
1999,? reports the Internet Advertising Bureau. ?The online ad revenue
total for the year's first three quarters was more than double that of
1998 for the same period. Banner ads continue to be the most popular
format, representing 55% of all online plugs.? Internet ad revenues
are estimated to reach $28 billion by 2004, up from $4.3 billion
presently.?

?According to the Internet Advertising Bureau, banners account for 56%
of the $4.6 billion spent online in 1999. Banner ad revenue is
expected to reach $28 billion by 2004, according to Jupiter
Communication.?
  
Source: July 2000
REAL-TIME VERIFICATION OF WEB SITE AD TRAFFICKING
By Dennis Stillwell, CIO, Global Network Incorporated
http://www.dgonn.com/tracking.doc


-----------------------------------------------------------------------------


?Another example of far-off forecasting came in the advertising
business. When the promise of Web media was at its peak in 1999 and
2000, researchers predicted that banner ad sales would explode. One
researcher predicted that in 2001, online ad sales would hit $16
billion. Contrasting the predictions, banner ads "bombed" in 2001,
with ad revenue at only $7.3 billion, down 10 percent from the
previous year.?

Business Week: February 18, 2002.
http://myphlip.pearsoncmg.com/cw/mpviewce.cfm?vceid=3155&vbcid=1669


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Banner ad sales continue to slide
By Andrew Donoghue, Computing [29-03-2001]

?Companies currently spend 61 per cent of their online advertising
budget on banner ads, but this is set to drop to 48 per cent by 2003
as a variety of other formats become popular, said Forrester
Research.?

?Additionally, Merrill Lynch has forecast that the banner ad market
could fall by 25 per cent this year following the development of more
complex branding deals and campaigns running across interactive TV and
mobile phones.?

PC MAg Online: 29-03-2001
http://www.pcmag.co.uk/News/1119880



Search criteria:
"banner ad sales" billion
"banner ad sales" billion 1994..2002
"banner advertising market " billion
"banner ads "  sales billion
"banner ads" billion 1994..2002

I hope you find this information helpful! 


Best regards,
Bobbie7
tivoli-ga rated this answer:5 out of 5 stars
Thanks for the speed and the thoroughness of your answer. Much appreciated.

Comments  
Subject: Re: Banner ad sales figures industry wide
From: cybernest-ga on 30 Jun 2004 11:01 PDT
 
Hi Tivoli

As you suspected, very difficult to find reliable numbers prior to 2000.

The Interactive Advertising Bureau (IAB) was able to provide about the
most reliable stats.

"Founded in 1996, the IAB is the leading online advertising
association with over 300 active members. Its activities include
evaluating and recommending standards and practices, fielding research
to document the effectiveness of the online medium and educating the
advertising industry about the use of online advertising. Current
membership includes companies that are actively engaged in the sales
of Internet advertising, with associate membership including companies
that support advertising, -- interactive advertising agencies,
measurement companies, research suppliers, technology suppliers,
traffic companies and other organizations from related industries. A
global organization, the IAB has member countries including Canada,
Belgium, France, Germany, Holland, Italy, Switzerland and the United
Kingdom, and is currently developing membership countries in Asia and
Latin America, as well as other countries in Europe. The IAB and the
Internet Local Advertising & Commerce Association(ILAC) agreed to
combine their organizations in July of 1998."

Contact:

Emily Kutner
Director of Public Relations
IAB
212-949-2432 ext 209
917-586-2525 - mobile
emily@iab.net 


"The IAB Internet Advertising Revenue Report compiles data reported
directly from publishers, making it the industry's most timely and
accurate gauge of online advertising revenue. Conducted by the New
Media Group of PricewaterhouseCoopers on an ongoing basis, with
results released quarterly, the "Advertising Revenue Report" was
started by the IAB in 1996, and represents data from more than 200
companies representing over 1200 Web sites. All-encompassing in
nature, the survey includes data concerning online advertising
revenues from Web sites, commercial online services, free e-mail
providers, and all other companies selling online advertising.

Conducted by the New Media Group of PricewaterhouseCoopers on an
ongoing basis, with results released quarterly, the "Advertising
Revenue Report" was started by the IAB in 1996, and represents data
from more than 200 companies representing over 1200 Web sites. The
results reported are the most accurate measurement of online
advertising revenues since the data is compiled directly from
information supplied by companies selling advertising on the Internet.
All-encompassing in nature, the survey includes data concerning online
advertising revenues from Web sites, commercial online services, free
e-mail providers, and all other companies selling online advertising.

PricewaterhouseCoopers (www.pwcglobal.com), the world's largest
professional services organization, helps its clients build value,
manage risk and improve their performance. The PricewaterhouseCoopers
New Media Group -- with offices in New York, Los Angeles, Seattle, San
Francisco Bay Area, and Boston -- combines content and technology
specialists to provide comprehensive service to dynamic
entrepreneurial companies. Services include management consulting,
business assurance services, ad delivery and privacy attestation and
consultation, assistance with mergers and acquisitions, tax planning
and compliance, capital structuring and employee benefits and
executive compensation packages.

Drawing on the talents of more than 150,000 people in 150 countries,
PricewaterhouseCoopers provides a full range of business advisory
services to leading global, national and local companies and to public
institutions. These services include audit, accounting and tax advice;
management, information technology, strategic and human resource
consulting; financial advisory services including mergers &
acquisitions, business recovery, project finance and litigation
support; business process outsourcing services; and legal services
through a global network of affiliated law firms."

Advertising Revenues Total

Year 1997 - Total Revenue = $906.5 million - Banner Advertising No Breakdown
Year 1998 - Total Revenue =  $1.92 Billion - Banner Advertising No Breakdown
Year 1999 - Total Revenue =  $4.5 Billion - Banner Advertising 48%
Year 2000 - Total Revenue =  $8.2 Billion - Banner Advertising 48%
Year 2001 - Total Revenue =  $7.1 Billion - Banner Advertising 36%
Year 2002 - Total Revenue =  $6.0 Billion - Banner Advertising 29%
Year 2003 - Total Revenue =  $7.3 Billion - Display Ads 21% (No longer
referred to as Banner Advertising)

As you can see, no specific numbers for the earlier years.  You will
however find more detailed breakdowns in the .pdf reports provided
here:

http://www.iab.net/resources/ad_revenue.asp

Looks like the trend is heading back to the peak revenues in 2000!  Let's hope so!

Hope this helps!

Regards

Cybernest
Subject: Re: Banner ad sales figures industry wide
From: tivoli-ga on 01 Jul 2004 06:14 PDT
 
Thanks! Much appreciated.

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