Comments on: IAB: Metrics Dispute Resolved; As Expected, 2006 Online Ad Revs Rose 35 Percent To $16.9 Billion http://paidcontent.org/2007/05/23/419-its-official-online-ad-revs-rise-35-percent-to-a-record-17-billion-metr/ The economics of digital content Fri, 24 May 2013 02:22:43 +0000 hourly 1 http://wordpress.com/ By: Ashkan Karbasfrooshan http://paidcontent.org/2007/05/23/419-its-official-online-ad-revs-rise-35-percent-to-a-record-17-billion-metr/#comment-49914 Thu, 24 May 2007 02:34:44 +0000 http://paidcontent.wp.gostage.it/2007/05/23/419-its-official-online-ad-revs-rise-35-percent-to-a-record-17-billion-metr/#comment-49914 David, I don't think it's so much that "online advertising is slowing" as "non US markets will make up for the US getting ahead of other nations in terms of interactive advertising."

Example: in Canada (that big stretch of land above the USA), radio ads generated $1.3B, whereas Web ads garnered $1.01B. In a few years, which one will be larger, do ya think? Furthermore, if the Web is all about efficiency, more importantly, that means that the US’ Web industry at $16.9B is 16.7 times larger than Canada’s, yet the US population is only 10 times larger than Canada… and Canada skipped out on that whole dial-up thing and leapfrogged itself onto broadband. Between colder days, less sun etc., Canadians spend more time – hour for hour – than the US, so technically, it could be argued that the US should not be getting 16.7 times the web revenues that Canada gets, but somewhere like 8-10 times.

This is one very simple, but enormous reason why it is very normal for US online ad growth rates to slow down because as leader of the advertising world, the US has gotten a disproportionate share of ad dollars between 1994-2006 and a major chunk will flow to other nations, the Web is all about optimizing and hitherto, it's been anything but.

More here:
http://www.watchmojo.com/web/blog/?p=1591

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