May 13 2008
Ad Networks to grow by 60% in 2008
Media spend on online advertising networks will grow by 60% in 2008 to an estimated £385 million, according to a new report published by E-consultancy
The pace of growth for ad networks continues to outstrip overall online display advertising due to improved understanding of the potential for return on investment and increased opportunities to reach the right audience effectively, for example through the use of behavioural targeting.
The market valuation is included in E-consultancy’s new 2008 Online Advertising Networks Buyer’s Guide which contains an analysis of market trends and profiles of 28 leading networks.
The valuation of this sector is based on E-consultancy’s estimate that overall display advertising will grow by 30% in 2008 to £770 million, and that the networks’ share of this type of ad spending will grow from 40% to 50%.
Linus Gregoriadis, Head of Research at E-consultancy, said: “Online ad networks operate in one of the most competitive spaces in the digital sector, and often one of the most controversial. But in spite of their challenges, networks continue to benefit as marketers raise their digital budgets and recognise the economies of scale networks bring to campaigns.”
This report’s last update, released in January 2007, estimated that media spending with ad networks doubled to £120 million in 2006. Similarly impressive gains were evident last year. E-consultancy has also estimated that the market for ad networks doubled in 2007 from £120 million to £240 million.
Gregoriadis added: “The growing influence and momentum of networks is evident from the large number of new players since our first buyer’s guide on this topic in 2005. The best networks have been able to differentiate themselves with the use of behavioural targeting to help advertisers target their audience more effectively.”
