Online Bigger Than TV?!

Posted: April 20, 2006 in Uncategorized
Lots of good news re: online advertising.  YHOO did it’s thing earlier in the week… GOOG followed suit today.
BUT, what caught my eye was something Jonathan Berr wrote in
     Internet advertising is poised to surpass network TV spending, according to Merrill Lynch.
This is huge/interesting for two reasons:
(1)  I believe TV is about 30% of the $400-$600 billion ad pie… about double my 15% online expectation.
(2)  It’s a silly comment because TV will soon be online and interactive… meaning, it will be considered "Internet advertising."
Either way, this is good news for online advertising. <smile>
  1. Unknown says:

    I think Jonathan is misreading something. I can\’t find a single reference anywhere to anyone at Merrill Lynch saying online ad spend is poised to over take TV, and it would be an astounding rate of growth. According to Zenith, online accounted for 4.5% of the total global ad market last year. In the UK, which is a pretty advanced market, it was 8%, overtaking radio. TV is about 24%. I doubt those figures are too far out from the US.

    However, online is the only sector slated for significant growth this year – 27%, according to ML. Maybe he\’s just misread that.

  2. Royal Farros says:

    Ian, I\’ll ping Jonathan and see what he says.  It might be restricted access, I\’m sure gets paid research from all the major houses.