On October 4, Adlink proclaimed the day of online advertising. But how is this advertising measure, which has long struggled to really establish itself, faring?
The first online advertisement, an AT&T banner, sparked controversy in 1994: The Internet was a commercial-free space and some wanted it to stay that way. Despite the initial defensive reaction and all the prophecies of doom, a real boom set in over the following years.
Figures collected in the USA show that: in 1996, online advertising revenue amounted to 267 million US dollars, just two years later it stood at 1.9 billion, in 1999 it was 4.6 billion. When the bubble burst in 2000, online advertising revenue was 8 billion dollars. Things went downhill until mid-2002, but then the industry generated high growth rates again and in 2004 revenues reached a new high: 9.6 billion. For the next few years, constantly increasing growth rates in the range of five to eight percent are predicted worldwide.
In addition to economic and industry-specific factors, the rapid spread of broadband Internet helped online advertising achieve a breakthrough. Faster transmission enabled the multimedia design of content and advertising. As a result, online advertising finally found its place in the advertising mix. What academics and advertising experts have long debated in theory as cross-media has become practice: different media are synergistically linked together. As studies by online marketer IP Newmedia show, cross-media communication concepts improve advertising recall and are a potent means of improving brand image.
However, the impressive absolute figures and growth rates should not hide the fact that online advertising only accounts for just one percent of total advertising sales. However, it is also true that since the foundations for integration into the overall advertising mix have been established, this share has been growing rapidly.