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The Kelsey Report® White Paper

Is an Online Ad Upsurge in the Making?
Charles Laughlin , 6/30/2003

Issue: AD:TECH Turnout One Sign Dark Days May Be Nearing an End

News: Last week's AD:TECH conference in San Francisco attracted more than 3,000 attendees, according to various media reports covering the event. This surge in turnout offers one data point for optimists who think online advertising is in the midst of a comeback. As a point of contrast, in 1999 and 2000, the heyday of the Internet bubble, the event drew 2,220 and 2,700, respectively.

Other signs point to a revival in online advertising. Recent data from the Interactive Advertising Bureau, cited in the June 18 issue of The Kelsey Report� Client Alert, also hint at a comeback for online advertising. The IAB reported that 2002 online ad revenues were down 16 percent over the previous year, to US$6 billion. However, signs of strength in the fourth quarter point to better times ahead. Fourth-quarter online ad revenues were US$1.6 billion, up 9 percent over the third quarter and higher than the original US$1.5 billion forecast.

Also, according to a report in the Wall Street Journal June 12, Goldman Sachs revised its online advertising forecast upward to US$5.99 billion from US$5.47 billion, largely based on positive comments from media executives at a recent Goldman Internet conference. In addition, some online players like Yahoo! reported improved results in the first quarter of 2003.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. The Kelsey Group disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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