Brian Ma's Blog (@zealoustiger)

Weekly insights from an Entreprenuer: To spend one year as a tiger is better than to live forever as sheep

$$$: Online Ad Spend


I’ve been doing a lot of market research lately for my startup. Any web entrepreneur is probably considering or has considered Ads as a viable business model. Google has made it super easy here. $9.99 Billion in ad revenues in 1H07. They must be doing something right. So what category/industries spend the most online? Here’s what I undercovered:

Categories that spend the MOST online:

  • Internet (51.2%)
  • Diet and Fitness (26.1%)
  • Computer Products (18.6%)
  • Financial Services (17.0%)
  • Education (14.2%)
  • Media (13.7%)

Categories that spend the LEAST online:

  • Home Furnishings (1.8%)
  • Personal Care Products (1.8%)
  • Retail Home & Building (1.7%)
  • Household Products (1.5%)
  • Apparel (1.4%)
  • Restaurants (0.9%)

The percentages read something like this: Diet and Fitness category advertisers spend an average of 26.1% of their 2006 total media budget on the Internet. So while this might not be a good indication of how much absolute $$ each category spends, it is a good indicator of how comfortable each of these industries are at spending money advertising online.

Maybe I should start a “LOSE FAT IN 30 DAYS” startup to capture that 26.1% Diet and Fitness category. :)

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