eMarketer reports that online advertising revenues for the first half of 2005 increased 26% over the first six months of 2004 to $5.8 billion. Solid growth, of course, but not particularly surprising.

It’s interesting to note that for the major tactics cited, the percentage of total revenues has remained flat from 2004 to 2005: search is number one, of course, commanding 40% of the pie. In the number two spot: display ads, with 20% in both years. Classifieds comes in third, with a small rise from 17% to 18%, while rich media hangs tough in fourth place at 8% both years. (I’d have expected rich media to make something of a move on the pack, what with the increased penetration of broadband and the general “gee, whiz!” factor that tends to wow the VPs approving the budgets.)

Also interesting: The CPM pricing model took a slightly larger slice of the pie in 2005: 48% vs. 45% a year ago. Pay-for-performance deals increased, too, from 38% to 40%. A drop in CPM/performance hybrids from 17% to 12% made up the difference.

Takeaway for marketers: Search works. Duh. Just make sure that as that traffic is driven to your site, potential customers have a clear understanding of what to do next.

This entry was posted on Thursday, September 29th, 2005 at 12:01 am and is filed under Marketing Stuff, Marketing Takeaways.