Last updated on November 28, 2001
Advertising is here to stay like those annoying billboards on the
side of the road. Don't get me wrong, I know that they are needed
and advertising is good for the economy and the consumer. It just
seems hard to imagine anything without some sort of corporate sponsorship
stamped and tattooed all over it. In fact, the only place that I
can't remember seeing corporate advertising of any kind was at church.
However, it's been quite some time since I've been there therefore
this information may not be up to date.
A major contributor
of such an explosion of retail and advertising on the Net is the
fact that the number of people that have access to the Internet
has grown exponentially and it keeps growing daily. So why all the
hype? Because the Internet pays. Here are some numbers to
take into account when thinking about the enormous effect the internet
has had, not only in the advertising world but also in the economy
and our society:
The Internet is growing faster than all other technologies that
have preceded it. Radio existed 38 years before it had 50 million
listeners, and television took 13 years to reach that mark. The
Internet crossed the line in four years.
In 1994, a mere three million people were connected to the Internet.
By the end of 1998, more than 100 million worldwide were using
it, including 62 million Americans. Other estimates have put that
number slightly lower, at 49 million Americans.
- The nformation technology industry is growing twice as fast as the
overall economy. Without information technology, inflation in
1997 would have been 3.1 percent, instead of the 2 percent it
1995 when the Internet was not as highly recognized as is today,
advertising totaled $312 million. Online ad revenues grew to $4.62
billion in 1999, a 141% increase from 1998, according to the Internet
Advertising Bureau: http://www.iab.net .
The portion of online advertising spent on email marketing continues
to increase. Though it accounted for 2% of online ad spending for
all of 1999, in the fourth quarter it made up 3% of the total. In
contrast, the share of spending directed to banner ads is declining.
Banner ads accounted for 56% of spending for the entire year, but
53% of spending in the fourth quarter. The remaining types of 1999
Internet advertising and their percentages of total spending for
1999 are: sponsorships, 27%; interstitials, 4%; and other, 11%.
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