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Internet Ad Revenue Soaring

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Internet advertising revenue in the United States leaped in the last year, according to the new Internet Ad Revenue Report study, conducted by the New Media Group of PricewaterhouseCoopers (PwC) and sponsored by the Interactive Advertising Bureau (IAB).


Web advertising revenue totaled $2.37 billion in the second quarter of 2004, representing a 42.7 percent increase from last year,


The report found that for the first six months of 2004, U.S. Internet advertising revenue totaled approximately $4.6 billion -- a 39.7 percent increase over the first six months of 2003.


Consumer advertising was the top category in online advertising spending, accounting for 49 percent of total revenues for the second quarter in 2004. Last year in the same quarter, consumer advertising accounted for 35 percent of total revenues.


"Internet Advertising is without question taking share from the other media at this time, and for good reason -- marketers have figured out that online advertising is often the most cost effective medium for influencing both branding and sales results. This data is fueled by recent public announcements that online ad budgets are dramatically increasing, for instance approximately 25 percent is going online for Ford’s Lincoln Mercury and approximately 50 percent for Vonage,” says Greg Stuart, president and chief executive editor of the IAB.


The study found that search format ads have grown 97 percent in absolute dollars in 2Q 2004 compared to 2Q 2003. Rich media has grown 27 percent in absolute dollars.


Internet Ad Formats Table













































2004 Q2


2003 Q2


$M % (of total revenues)


$M % (of total revenues)


Search $947M (40%)


$481M (29%)


Display Ads $474M (20%)


$382M (23%)


Classifieds $403M (17%)


$282M (17%)


Sponsorships $213M (9%)


$199M (12%)


Rich Media* $189M (8%)


$149M (9%)


E-Mail $47M (2%)


$66M (4%)


Referrals $47M (2%)


$17M (1%)


Slotting Fees $47M (2%)


$83M (5%)




*In 2004, the “interstitial” format was combined within the “rich media” category. Dollar figures are rounded

Sales reps


Sales reps can definitely be underappreciated. You get 19 "nos" for every "yes" -- and that's if you're lucky. While your colleagues are home in time for dinner, you are the road warriors who take the red-eye to Des Moines only to be deprioritized and cancelled at the last moment. And if you actually get the meeting, there's a good chance that some of the prospects in the room will be more interested in checking their Facebook app than paying attention.


Add in complications such as flight delays or tech woes, and some days would probably wear anyone down. But these folks get up, dust themselves off, and keep hunting for the good of the company. The silver lining is that the very best sales reps are actually the most appreciated peers in our business; they bring in the business that allows everyone else to keep their jobs.


Analysts


Big data, big data, big data. It's been such a buzz phrase recently. But ask someone on the analytics team just how big the appetite actually is. Analysts live in a structured world with deep math and statistics that most of the organization just doesn't have the skill set to figure out. Many times, there's a lot of head nodding and lip service to how important the data is, but then, for some reason, the executive team makes a decision that is counterintuitive to what the data is showing.


Actually, one of the most important skills analysts can have is the ability to bridge the knowledge gap for their peers and distill the data down to smart, transformative insights. If you're in the analytics department and you want to be more appreciated, try doing a better job of delivering your message in a way that the rest of your colleagues can better understand. They'll love you for it.

Agency rookies


Being an agency rookie is a thankless job. You'll most likely work harder in your first two years than you will during the rest of your career. Everyone put their time in so now it's your turn to work long hours, be relegated to the most menial, repetitive tasks, and be paid a fraction of your worth.


For those who complain and moan about how little they're appreciated, just be glad you have your foot in the door. But, just as with life, the opportunity is what you make of it. Show your company's executive team that you're a go-getter and willing to pay your dues, and your hard work will be rewarded. There's not a single agency manager who didn't go through the same ordeal, and many of them might have had it worse than you do. If you want to be appreciated, you have to earn it.


Tech support


Tech support in any industry inherently means that your day is spent dealing with problems, problems, problems. No smiles, just frowns. This industry's infrastructure is software, and the fact is that even at 99.9 percent uptime, there's still going to be issues 0.1 percent of the time.


When you pick up the phone, there's a good chance you'll be talking to someone who's on the border of irritated and irate. Most people don't have the patience for tech hiccups even if your platform has been solid the other 364 days of the year. And, remember, the tech support team members rarely have contributed to the issue you're having -- so to get angry with them is misguided. Show that you're a good partner and that these folks don't deserve to be the target of your rage. They can help you faster when you're calm and not in complain-mode.

Chief financial officers


It's almost a requirement that the CFO has to be a hard ass. Everyone feels that they don't get enough of the budget. Marketing wants more. Sales teams want more. R&D wants more. Someone has to keep the fiscal realities in check, and that's the CFO's job. In fact, if you're not comfortable with saying no and being the bad cop, you probably won't be a successful CFO.


Talk about a thankless job! This doesn't mean that CFOs have to be jerks -- in fact, the good ones are very calm and collected and are able to use tact when explaining why the numbers aren't feasible for every pet project that comes across their desk. Next time you feel your CFO isn't listening to you, put yourself in that person's shoes and realize that your company would be out of business in a month if there wasn't a disciplined approach to budget allocation.


International satellite office employees


Working in the international satellite office can sometimes feel very far removed from the action. Although on one hand it can be empowering to be the lone wolf out on the hunt, the flip side means it can get lonely not having the daily interaction with the rest of the team. It's also difficult to build up the equity with your colleagues and benefit from the natural knowledge sharing that comes with the organic face time at the home office.


Dealing with time zone issues can mean meetings where everyone else is bright eyed in the sunshine and don't comprehend why you might not be energized at 2 a.m. your time. People who thrive on trailblazing push right through the under-appreciation and love the challenge of building up a book of business so that the satellite office turns into a fully staffed, important component of the broader international strategy.


Josh Dreller is director or marketing research at Kenshoo.


On Twitter? Follow Dreller at @mediatechguy. Follow iMedia Connection at @iMediaTweet.


"Young business woman show ok" image via Shutterstock.

Roger has worked as the Web Editor for Emap/USA Outdoor Group and was responsible for editing articles for several publications. Prior to Emap/USA, Roger worked as a Development Executive for television and feature production companies. Roger has...

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