Safa Rashtchy’s newsletter is one of my Monday morning must reads. If you are interested in tracking trends in online commerce and advertising. This morning’s edition contains a forecast of continued growth of online advertising in 2006 following discussions Piper Jaffray’s analysts have had with large ad agencies. The forecast pegs that growth at 24%, as compared to 36% in 2005 - and categorizes the estimate as potentially conservative.
Key facts mentioned in the report were:
- Auto, Finance, & Entertainment Advertisers expressing strong demand, and Healthcare is starting to shift budgets online (this can only be positive for healthcare vertical search engine Healthline that just pulled in a large round – congrats to friend Tony and team).
- Agencies expect pricing to increase 15%-20% for high-demand inventory
- Inventory shortages do not appear to be an issue (this refers to a previous news that the inventory of top Internet sites were fully sold out).
- Ad networks primarily utilized for direct response today, but are beginning to get more branding dollars.
- Video ads the next big ad format - expecting 2 or 3x the CPM of traditional banner ads.
- Search demand remains strong; ROI becoming more challenging.
- Web design and analytics experiencing increased demand.
I've seen others blog about his newsletter too. How do I get on the distribution?
Posted by: Peter Caputa | January 23, 2006 at 02:39 PM