Online Advertising: The 50 Billion Dollar Opportunity

October 18, 2010 | Written by Dusty Dean

50 Billion Global Internet Advertising Opportunity

Morgan Stanley managing director and leading technology researcher Mary Meeker predicts a $50 billion dollar online advertising boom.

Her recent presentation delivered at the Web 2.0 Summit in San Francisco contained a slide that caught our eye. It compares media consumption time versus percentage of ad spend.

The slide suggests that people spend 28% of their time on the Internet, while only 13% of advertising is spent there. Both percentages are rising and she suggests that the discrepancy will create a $50 billion dollar global opportunity for advertisers.

Companies are most often attracted by the tracking analytics and ROI benefits of online advertising spends.

It’s interesting to think of this discrepancy in the context of a report from last year that 80% of Google’s AdWords revenues come from their top 1% advertisers. These advertisers are large corporations who have realized the large ROI of direct marketing ad spends.

Though we can’t vouch for the integrity of the sample sizes, we have seen that larger companies often are the first ones to invest in the talent and resources for new advertising platforms.

It will be interesting to see how much of this opportunity is filled by medium to smaller sized companies.

We believe new trends such as mobile and location enabled advertising platforms will spark more interest and growth and help fill the gap.

Update: We’ve embedded Mary Meeker’s entire 18 minute presentation below.
[youtube width=”547″ height=”344″][/youtube]

October 18, 2010 | Written by Dusty Dean

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