Online ad revenue in the U.S. continues to grow strongly as it increased by 26 percent year-over-year for the first quarter of 2007, said the Interactive Advertising Bureau and PricewaterhouseCoopers.
"The continued growth of online ad revenues clearly illustrates marketers' increased comfort with the extraordinary vitality and accountability of this medium," IAB President and CEO Randall Rothenberg said in a statement.
While text advertising has been strong for quite some time, growth in the rich media advertising sector will only continue to increase as it's really still in its infancy.
With broadband penetration projected to grow strongly for some time, the video and image ad sector will grow stongly for years.
Another reason why that's important is because larger companies are more used to marketing in this way, and so know how to use video and image tools better thant they do the text. Also the text area has more competition for them.
Even if the typically cyclical ad market were to decrease, I don't think that will have a lot of effect upon the growth of the Internet ad market as higher percentages of spend by companies should ensure that it will be robust for years into the future.
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