Growth of Internet Advertising

"Internet ads hit another milestone" (Associate Press). "Internet advertising sales jump 26%" (Bloomberg News). "Broadcast TV Posts Loss" (Broadcasting & Cable). Press releases often seem to highlight the increase in Internet advertising and the demise of television advertising. Although these articles convey accurate information, one might walk away from these messages that the king (television) is dead.

Internet advertising certainly has made its presence felt in the advertising community as it has grown quite substantially. And the rate of growth of Internet advertising is arguably newsworthy. Most articles will even comment that Television Media is still the dominant media, but that point may sometimes be lost in the Internet hype.

Some recent TNS Media Intelligence statistics on US Advertising Spending illustrate this point.

The over 16% increase in Internet advertising is notable, as is the almost 3% decline in television advertising. However, a corresponding TNS Media Intelligence table is also telling.

Television, although showing some decline in early 2007, is still the single largest media source. Corresponding annual patterns are also interesting.

Note that although US television advertising spend has shown a decrease as a percentage of spending since 2004, it has actually shown an increase in actual dollars spent over the last couple of years, as the total amount of advertising spending has increased.

Kodak film is used in the shooting of a great number of television commercials. The commercials segment remains an extremely important market segment to Kodak. For the last several years and projections for 2007 are for the commercials segment to contribute over 30% of Kodak's origination film revenues. As far as Kodak is concerned, television commercials remains an extremely relevant and important segment that it will continue to support.