What affects the advertising budget?

www.doubleclick.com made an research on the current situation. According to their number, online advertisement spending grew 63% from 2000 to 2004 in absolute terms ($4.3 billion in 2000 to $7.1 billion in 2004). The Internet’s growth, meanwhile, was 52.7% as a share of total consumer media ad spending (excluding direct mail and yellow pages) in that same period. By comparison, overall ad spending in the same period on TV grew 10.6% in absolute terms (from $51 billion to $62 billion) and 3.6% as a share of total consumer media ad spending. The newspaper sector was the biggest loser in the media mix in terms of share of all ad dollars. Its readership is aging and declining, and its important base of classified ad revenue faces stiff competition online from the likes of eBay, Craig’s List, Monster.com and Match.com. Newspaper ad revenues were down 4.3% in absolute terms over the last five years ($49 billion to $47 billion), and they fell 10.4% in terms of share of media spend.

But those numbers do not tell the whole story. While at a high level, the growth of the industry remains steady and the budget allocation among media outlets is shifting only gradually.

Source: The decade in online advertising. www.doubleclick.com 2006