Advertising.com Survey: Interactive Publishers Increase Spending Online

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Advertising.com has released its third annual survey of interactive publishers. The survey explains, “While web-based direct-response advertisers are expected to represent the majority of online revenue, publishers are predicting increased spending from traditional, brand focused advertisers.” Publishers believe that web-based direct-response advertisers account for the largest percentage of online ad spending at 58.5% and that 25% or more of ad revenue will be generated by traditional advertisers. Furthermore, roughly 40% of publishers expressed that branding is their advertisers’ main objective; this is an increase of more than 100% over publisher predictions from 2005.

According to the survey, text ads are the most profitable online ad unit with more than 67% of publishers stating that they support text links (a 30% increase over 2005). Publishers also predict that 15.9% of revenue will come from banner adswith 14.6% of revenue generated by large rectangular ads.

The percentage of publishers that support contextual advertising is up from 50% in 2005 to 67% with 76% supporting rich media, 35% supporting video advertising, and 30% using behavioral targeting. The survey also finds that more than 42% of publishers also support streaming content, and 30% of publishers who do not already support streaming content will begin supporting it this year.

The surveyadditionally indicates that, for the third consecutive year, CMP pricing models make up the largest share of revenue for publishers. Pop-up ads, which have been staples of the online advertising landscape, are not expected to be profitable for the first time in three years.

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