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Q1 Online Ad Spend Up 9 Percent

Online advertising spending in 1Q06 increased 9.3 percent from the previous quarter, with prices also increasing - up 3.8 percent for premium inventory, 2.7 percent for run of network, 3.1 percent for search - according to the sixth in a series of quarterly studies by Deutsche Bank together with MediaPost, writes the latter. Some 72 percent of surveyed media executives said clients spent more on internet advertising in 1Q06 than in 4Q05, with 41 percent citing increases of 10 percent or more.


Some 55 percent said CPMs for premium inventory had increased in the same period, with 15 percent reporting increases of more than 10 percent; 50 percent said run-of-network inventory prices had increased, with about 9 percent reporting increases of more than 10 percent.

Keyword costs were also up, with 53 percent saying so; 15 percent reported increases of 10 percent or more. Google accounted for 44 percent of cost-per-click spending; Yahoo, 20 percent; MSN, 5 percent. AOL, MSN, and Yahoo together garnered 22 percent of display ad budgets; niche sites (e.g., iVillage, Marketwatch, CNET) captured 23 percent; ad networks accounted for 10 percent.

Previous coverage:

- 4Q Online Advertising Beats Media Execs' Expectations
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More of Online Ad Budgets Go to Local Sites
- 3Q Online Adspend Up; 4Q Looks Good, 2006 Even Better

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