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To: Lizzie Tudor who wrote (6271)	1/19/2006 6:59:06 PM
From: Lizzie Tudor	Respond to of 15857

Online Ad Spending Surpasses Expectations by Wendy Davis, Tuesday, Jan 17, 2006 6:00 AM EST A MARKETING PUSH DURING THE holiday season propelled online ad spending to increase by a greater-than-anticipated 15 percent in the fourth quarter, according to a new study conducted by Deutsche Bank in conjunction with MediaPost. Pricing also increased, although not as dramatically: the cost of premium inventory increased by an average of 6 percent from the third quarter to the fourth, while the price of run-of-network inventory increased by about 3 percent during that time, and pay-per-click prices went up by 5 percent. For the report, 60 media executives were questioned earlier this month about their clients' experiences with Internet advertising in the fourth quarter, and expectations for this quarter. This survey, which was conducted online by InsightExpress using members of the MediaPost advisory panel, is the fifth in an ongoing series of quarterly studies of media professionals by MediaPost and Deutsche Bank. Overall, the report was extremely optimistic. "A 15 percent improvement in spending would suggest that things are better than expected at this point," said Deutsche senior analyst Jeetil Patel. "It's quite bullish for the industry as a whole." Responses to the third-quarter survey had indicated that spending would only increase by around 10 percent. About 72 percent of media executives responding to the current survey reported that their clients spent more on Internet advertising in the fourth quarter than the third, with 55 percent seeing increases of more than 10 percent. An additional 20 percent reported no change in spending, while 8 percent said spending declined. publications.mediapost.com