International Property News

Spending on Internet ads up by record 70% in 2007

21st March 2008

Gross spending on Internet advertising, including banner ads and other formats, reached Kc3.44bn in 2007, a record growth of nearly 70 percent year-on-year, a poll by the section of Internet publishers (SVIT) of the Czech Publishers' Association has shown.

This year, gross turnover in Internet ads could grow by a quarter to Kc4.3bn.

Apart from data on banner ads, SVIT's estimates also took into account other forms of Internet adverts which make up a significant part of Internet server providers' revenues.

Gross spending on banner advertising rose by more than 60 percent year-on-year to Kc1.96bn last year, SVIT said.

"We can estimate net revenues from banner advertising amount to around Kc1.13bn, based on data from part of the poll's participants," SVIT said.

This year, gross volume of banner advertising should grow by nearly 30 percent to Kc2.52bn.

Gross turnover in other formats excluding banner ads amounted to an estimated Kc1.49bn last year, a year-on-year growth of around 84 percent from Kc808m in 2006.

This year, the volume should increase by 20 percent to Kc1.79bn.

The participants of the poll expect a stable growth for this year rather than sharp swings, SVIT said.

The increase in the volume of Internet advertising will be affected mainly by the Olympic Games, the European Football Championship and Senate and regional elections in autumn, the poll showed.

SVIT estimates are based on information about servers which make up more than 80 percent of the Internet advertising market.

The total gross advertising turnover is an aggregate of gross advertising turnovers with direct clients, advertising agencies, media agencies, media representations and turnovers from other common forms of Internet advertising.

Other forms of advertising include the placement in catalogues, text ads, key words and systems on the basis of payment for a click. They do not include banner ads barter arrangements.