Internet Advertising Passes Radio Advertising; Rivals TV, and Print Markets

For the first time, spending on Internet advertising was greater in the first quarter of 2007 than for radio advertising, according to a recent report by TNS Media Intelligence. Ad spending as a whole was down for the period, but this did not affect the steep upward trend of Internet ad spending.

This marks a major milestone for Internet advertising as two traditional media outlets now have smaller market-shares than online advertising. The Internet first passed outdoor advertising (billboards and the like) a few years back and has since grown to three times its size.

What's more, these numbers only cover display advertising. The Google Adwords service alone brings in about as many dollars as the entire Internet display ad market. And Google is not the only company to offer search advertising.

With search advertising figures taken into account, Internet advertising already rivals the newspaper, magazine, and even network television markets. Yes, we said that correctly: online advertising now brings in about as many dollars as any single traditional advertising outlet.

So what does all this mean? Well, hype aside, the Internet is not—and never will be—the only form of advertising. We wouldn't recommend Internet advertising exclusively, any more than we would recommend TV or radio campaigns exclusively.

But, if you aren't running any Internet advertising—and most small/mid-size businesses still do not—it's probably time to start considering this untapped market. Programs like Google Adwords are extremely affordable, and unlike most forms of advertising, you only pay when people actually respond to your ads (by clicking them and visiting your website).

Further, the Internet (even more than traditional media outlets) requires innovative approaches to advertising. More than ever before, you must find ways to differentiate your products and services.