Despite recent reports that Internet ad spending is slipping, the latest studies confirm strong growth for this year with projections for continued growth.
In a detailed report released last Thursday [Sept. 28], eMarketer projected a 26.8 percent rise in Internet ad spending this year, with spending increases through 2010 that will remain sound.
Internet ad spending increased by 49 percent in the first half of this year compared with the same period last year, far outpacing all other media (network tv was up 6.3 percent).
Translated to dollars, this year’s Internet ad spending will reach $15.9 billion, with projections of $25 billion by 2010.
The eMarketer study tracked spending for specific online ad formats. Paid search advertising continues to dominate and will account for more than 40 percent of total Internet ad spending for the next five years, but online video spending will grow at a faster pace and double its share of total Internet spending by 2010.
Online video spending will jump 42.6 percent this year, with similar large increases through 2010. Paid search will rise by 31.4 percent this year, with lower increases in the years ahead. Other Internet ad formats, including display ads and classifieds, will increase at slightly lower rates.
This year, paid search advertising represents 42.5 percent of Internet ad spending compared with 9 percent for online video, but by 2010 the numbers will be 40.8 percent and 18 percent. Paid search will generate $6.7 billion in revenue this year, compared with $1.4 billion for online video. By 2010, more than $10 billion will be spent on paid search and $4.5 billion on online video.
The growth of online video advertising is significant, but it is being curbed by the lack of inventory on major sites and the inability of popular social networking sites to attract major advertisers, according to eMarketer senior analyst David Hallerman. “Premium pages like Yahoo, ESPN and The New York Times only have so much space to sell,” he said. “The advertisers who look at social media sites aren’t deep pocketed and the sites don’t appeal to traditional advertisers who have wariness about putting advertising on sites they don’t have control over.” But these sites could ultimately attract more video advertising by playing more videos. “More traditional video content online will support more traditional video advertising,” Hallerman said. For more information, contact David Hallerman at eMarketer at 212-763-6010.
Utah Leaders and Locals Rally To Keep Sundance Film Festival In The State
With the 2025 Sundance Film Festival underway, Utah leaders, locals and longtime attendees are making a final push — one that could include paying millions of dollars — to keep the world-renowned film festival as its directors consider uprooting.
Thousands of festivalgoers affixed bright yellow stickers to their winter coats that read "Keep Sundance in Utah" in a last-ditch effort to convince festival leadership and state officials to keep it in Park City, its home of 41 years.
Gov. Spencer Cox said previously that Utah would not throw as much money at the festival as other states hoping to lure it away. Now his office is urging the Legislature to carve out $3 million for Sundance in the state budget, weeks before the independent film festival is expected to pick a home for the next decade.
It could retain a small presence in picturesque Park City and center itself in nearby Salt Lake City, or move to another finalist — Cincinnati, Ohio, or Boulder, Colorado — beginning in 2027.
"Sundance is Utah, and Utah is Sundance. You can't really separate those two," Cox said. "This is your home, and we desperately hope it will be your home forever."
Last year's festival generated about $132 million for the state of Utah, according to Sundance's 2024 economic impact report.
Festival Director Eugene Hernandez told reporters last week that they had not made a final decision. An announcement is expected this year by early spring.
Colorado is trying to further sweeten its offer. The state is considering legislation giving up to $34 million in tax incentives to film festivals like Sundance through 2036 — on top of the $1.5 million in funds already approved to lure the Utah festival to its neighboring... Read More