Traditional media companies have been spurred to acquire online content providers as they seek more revenue.
Advertising online isn’t just about banners and pop-ups anymore. Real money has become part of the picture, according to a Wall Street Journal report.
An increase of 33 percent brought last year’s online advertising total to $9.6 billion USD, as noted by the Interactive Advertising Bureau. The best year previously was 2000, where ad revenue hit $8.1 billion.
Big names in media have been spurred to go out and buy up online companies. Companies like the New York Times, Washington Post, and Dow Jones all recently made acquisitions in the space.
As advertising in print and other media, along with readership, have given ground to the Internet, the big media companies don’t want to miss out on the growth online.
This year, ad expenditures by companies rose by 4.4 percent in the first quarter, to a figure of $33.5 billion, according to TNS Media Intelligence.
More viewership online should be expected, as more homes adopt broadband access and are able to view streaming video content. Advertisers will want to place their ads where they can expect to find viewers.
As content expands beyond the narrow niches of gadgetry and gaming, businesses will find more of their targeted demographic groups online. The content providers will expand their offerings and could eventually rival cable television.
That combination would lead to a dramatic increase in online ad spending.
David Utter is a staff writer for Murdok covering technology and business. Email him here.
