Search ads hot, online ad budgets will grow

From New Media Group of PricewaterhouseCoopers and the Interactive Advertising Bureau: keyword search accounted for 35 percent of all online advertising in 2003, up 15 percent from 2002. Two biggest categories in 2002 — banner ads and sponsorships — were down as a percentage, though actual dollars spent in each category grew. Overall online ads were up 21 percent to 7.3 billion More details at Center for Media Research.

Another big area of growth was ads sold based on performance-based pricing. Ads sold on hybrid prices fell significantly and CPM/Impression pricing fell slightly in 2003 from 2002.

Jonah Bloom, executive editor of Advertising Age writes about online ad-budget growth: “It might be a 3% or 4% ad medium by share of budget today, but it’s at a tipping point and there’s every reason to think it will be a 10% medium within the next two years.”

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