Big Brands Slash Budgets, but Overall Ad Spending Rises

Share this content:
Overall Internet ad spending rose 7.9 percent to $1.7 billion in October from $1.6 billion in September, despite an 18 percent slash in ad spending by leading Internet brands, Web advertising research firm AdZone Interactive reported this week.

AdZone, New York, tracks advertisers, brands, industries, date ranges, impressions and expenditures at 1,700 U.S. Web sites. The company counts all ads shown on the sites it monitors and bases expenditure and revenue estimates on advertising rate cards.

The report found that, and spent a combined $82.7 million on advertising in October., and saw the most advertising revenue. These Web sites have held the top three spots since July. AOL had the highest estimated ad revenue at $77.4 million, according to the report.

With the exception of August, when advertisers posted a 7.6 percent spending cut, total monthly ad expenditures have increased every month this year. Total Internet ad expenditures more than doubled from $818.5 million in January to $1.7 billion last month.

"It's evident advertisers are getting great value out of the Web by the continued increase in spending we see each month," AdZone Interactive president John Cardona said. "I don't think this is a trend that will end anytime soon, especially since we are entering the holiday season," he said.

But while spending may be up this month, a Nielsen//NetRatings study released last week suggests that increased ad dollars are not resulting in increased traffic over last year.

That study showed a 0 percent growth in traffic during the first week of November this year compared with the same period last year at the e-commerce sites it tracked in 10 categories. What's more, computer/hardware and toys/games sites showed 6.5 percent and 0.5 percent traffic decreases, respectively.

"This year we are not seeing the same trends, suggesting that other factors took the focus off the impending holidays, such as less dot-com advertising or interest in the presidential election," said Sean Kaldor, vice president of e-commerce at Nielsen//NetRatings.

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above