Online & Search Spending Rose In First Quarter 2005

Internet Ad Spending Up In First Quarter from MediaPost reports of a new study
finding online ad spend continued to grow in the first quarter of this year. Based on questioning 108 media executives, most spend is going to display ads — 57 percent, while
search gets 20 percent. Overall spending was estimated to be up 11 percent from the previous quarter. At the end of the story are more search specific stats, including that 69
percent reported paying more for search in this latest quarter. Google gets 53 percent of search spend; Overture gets 28 percent.

The vast majority of respondents–69 percent–also reported spending more to buy sponsored listings on search engines.
Thirty-five percent of executives said cost-per-click had increased between 1 and 10 percent, while 25 percent reported a price increase of 11 to 20 percent; 9 percent of
respondents said paid search was now at least 21 percent more expensive than in the last quarter of 2004. FindWhat and MSN are also named with 4 percent of spend each.

A separate brief story from MediaPost also covers that media
planners expect to pay more in the second quarter of this year.

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