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November 16, 2005

There’s money in those online ads

Posted by David Hunter at 12:53 PM ET.

Frank Barnako at MarketWatchAdvertisers’ growing Net appetite shows:

Sales of online advertising are so strong that some Web sites are sold out and taking orders 18 months in advance. “We have a supply issue,” Joanne Bradford, chief media revenue officer for Microsoft’s MSN, told the Wall Street Journal.

Rising demand is allowing major Web portals to raise their ad rates. Several told the Journal that they’ve increased prices as much as 20% this year.

MSN, owned by Microsoft Corp. , said it charges as much as $1 million for an ad that lasts 24 hours on the site. “It’s starting to get into Super Bowl territory,” said Sean Finnegan, U.S. director of OMD Digital, a division of ad-agency giant Omnicom Group.

Yes, there also was a Web advertising frenzy during the dotcom boom, but it’s different this time:

The president of the industry’s Interactive Advertising Bureau said media buyers are able to make rational judgments to justify online spending. “In 1999, there was no research and people were chasing fear and greed,” Greg Stuart told the Journal. “Now, there’s good data, plus marketers have their own real experience.”

Maybe so, but advertising has traditionally had boom and bust cycles and I doubt it’s any different on the Web. The full WSJ article is here.

Filed under Advertising, MSN

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