Timpani Sales & Marketing

Engage and connect with online visitors

US Online
Advertising Revenues

With more than 50% of online US households using high-speed access today, the Internet is becoming a pervasive influence in the day-to-day lives of consumers.

The link between the average time users spend on their PCs and broadband adoption rates is undisputed. Since February 2003 to February 2006, eMarketer reported that average PC usage at home among active Internet users increased approximately five hours-from 25.5 hours a month to 30.5 hours a month.

By 2008, the Telecommunications Industry Association (TIA) projects the US broadband market to include an estimated 56.9 million subscribers.

Marketers realize that the Internet will continue to play an increasingly important role in the everyday lives of consumers and have already responded by shifting advertising online. A March 2006 report released by the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) estimated that 2005 Internet ad revenues exceeded $12.5 billion.

Search engine marketing is expected to push online ad spending to $26 million in 2010; however, heavy visitor traffic does not necessarily correlate into bottom line revenue.

According to an April 2006 Forrester Research report, the average conversion rate for online retailers is just 2.6%, with some verticals averaging below 2%. The challenge for marketers today is not driving traffic online but persuading visitors to take desired actions.