According to the just-released Ernst & Young Internet Advertising Survey 1998, Internet advertising is beginning to hit its stride.
The results indicate that 1998 first-half revenues totalled (C)$8 million, with revenue for the second half projected at (C)$20.7 million. Industry revenues for 1999 are forecast to increase by 82 percent, to (C)$37.7 million.
“Revenues will continue to build as media buyers become more comfortable with using the Internet as a complementary advertising vehicle alongside the more traditional advertising approaches,” said Miles Faulkner, a partner with Ernst & Young Management Consultants’ NetCommerce Solutions team.
The new estimates come from the second of the semiannual surveys that Ernst & Young conducts for the Internet Advertising Bureau of Canada (IAB Canada). IAB Canada, formed in December 1997, comprises leading Internet advertising and marketing professionals dedicated to bringing structure and standards to an industry that previously had no collective voice.
The study presents evidence that the Internet is maturing and gaining acceptance by advertising agencies.
“The rapid growth and acceptance of the Internet into our day-to-day lives has created a new buying channel,” said Dr. Stephen Tanny, Ernst & Young Management Consultants’ chief economist. “This in turn has prompted advertisers and marketers to adopt more strategic use of the Internet, so the surge in revenues represents successful interaction between sellers, advertisers and consumers.”
