Attack of the Killer Online Ads

I’ve realized that many of my posts to date have assumed a basic premise: that online digital media and advertising is exploding in growth, creating a fundamental shift in generating enormous value that will be captured by entrepreneurial endeavors. To provide a little bit of context into the first part of that claim, I want to point to two articles published this week.

ClickZ reported that online ad revenues were up 33% last year to $9.6 billion dollars. Both the absolute size and relative growth of that figure are tremendous. But like most facts and figures, it is difficult to really wrap your head around it. (I will try to spend some time and see if I can provide some comparable $10B industries).

One way to grasp the enormity of what’s going on was identified by Advertising Age in an Economist article,

“This year the combined advertising revenues of Google and Yahoo! will rival the combined prime-time ad revenues of America’s three big television networks, ABC, CBS and NBC.”

Think about that. Really think about it.

Google and Yahoo larger than network prime-time.

(And it’s not getting any better for the networks, as this graph identified by Chris Anderson of Wired shows)

We truly are in an industry with enormous potential for the foreseeable future, as I believe that the drivers of these trends are going to continue.

David Beisel

David Beisel is a co-founder and Partner at NextView Ventures. He has been focused on early stage Internet startups his entire career, both as an entrepreneur and venture capitalist. As an investor in the digital media space, David was most recently a Vice President at Venrock and previously a Principal at Masthead Venture Partners. Prior to becoming a venture capitalist, David co-founded Sombasa Media, an e-mail marketing company best known for its flagship product BargainDog. Sombasa was successfully acquired by About.com where David served as Vice President of Marketing. David holds an MBA from the Stanford Graduate School of Business and an AB in Economics, magna cum laude and Phi Beta Kappa, from Duke University. He also founded and leads the Boston Innovators Group, an organization which holds quarterly entrepreneur events drawing a thousand attendees.

Leave a Reply