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Internet Ad Spending Boom Continues. Will There Be Lead Provider Fallout?

Tuesday, February 26th, 2008 | Link | Spread The Word!

TechCrunch points us to more news about the growth of internet advertising:

Two reports are out today on the size of the Internet advertising market. The Interactive Advertising Bureau has a preliminary estimate of $21.1 billion for U.S. Internet ads in 2007, a 25 percent increase over 2006. (For the fourth quarter of 2007, it is estimating $5.7 billion for the size of the industry, up from $5.2 billion in the third quarter).

Meanwhile, the Kelsey Group puts U.S. Internet advertising at $22.5 billion for 2007 (IDC, as previously reported, is at the high end with $25.5 billion). Click here to read more.

Many lead providers, like LowerMyBills and Adchemy, rely on mainstream internet advertising, primarily Pay-Per-Click and Banner Ads, and these mediums will become increasingly expensive in the future.  However, ad-heavy lead providers are already experts in optimizing the media and may have enduring advantages into the future as other industries and advertisers start stepping into their space.  Others, like LendingTree, that rely heavily on traditional advertising, may benefit from the migration to internet media by other traditional advertisers.  SEO-focused lead providers are relatively unaffected by this continuing shift in the internet advertising landscape.

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