In the first quarter of 2008, the growth in spending on Internet display advertising slowed to 8.5 percent from 16.7 percent growth last year, according to estimates put out today by TNS Media Intelligence. Even with the slowdown Internet ad spending still grew faster than that for TV (1.7 percent), magazines (0.8 percent), newspapers (-5.2 percent), radio (-4.5 percent), and outdoor (2.5 percent). The overall growth of all advertising spending that TNS measures was flat at 0.6 percent growth over the first quarter of 2007.

TNS’s Internet numbers do not include search advertising, only display ads. The quarterly total for all Internet advertising is closer to $6 billion. But this data point is evidence that the Web may not be immune to weakness in advertising spending overall. If the industry dives into a full-blown advertising recession, many Web companies could feel the impact.

The top 100 advertisers in the U.S., who represent 41 percent of total advertising spending, shifted about $1 billion last year from TV and newspapers to the Web. An analysis from Ad Age shows that overall media spending in “measured” categories (TV, print, radio, Web) by the top 100 advertisers was flat in 2007, with 0.3 percent growth to $61.3 billion. But spending on Web display ads rose 33 percent to $4.2 billion. The article notes: Put another way, these top-tier marketers increased measured internet spending by $1 billion; slashed newspaper spending by $674 million; and cut TV budgets by $406 million.

This is yet one more piece of evidence that dollars are flowing from traditional media to the Web. The analysis is based on data from TNS Media Intelligence for 2007. TNS only measures display advertising, and not search.

The big question is whether the recession that has already hit some categories of advertising will hit the Web this year. Already, the growth of spending in display advertising slowed overall in the first quarter of 2008. And the Interactive Advertising Bureau showed a slight decline for all Web advertising (including search) to $5.8 billion in the first quarter, from $5.9 billion in the fourth quarter of last year.

Politicians may be raising millions online, but they are still spending most of it on TV.

This year’s national and local elections are generating record levels of advertising spending.

eMarketer estimates online advertising from political campaigns and advocacy groups will reach $50 million this year.

That is not much compared to political ad spending overall, said Lisa E. Phillips, eMarketer senior analyst and author of the new report, Politics ‘08 Online: Push Meets Pull.

“Over the course of the year, less than 2% of political ad budgets will be spent online,” Ms. Phillips said. “That pales in comparison to the 50% to 80% of the budgets that will be spent on broadcast TV advertising.”

With all the excitement and traffic that political blogs, candidates’ social network pages and campaign Web sites are generating, why are politicians spending so little on online advertising?

“Television’s ability to push candidates’ messages out to a mass audience—and push it fast—makes it the winner for this hotly contested election year,” said Ms. Phillips.

The Campaign Media Analysis Group (CMAG), a division of TNS Media Intelligence, estimates $3 billion will be spent on political advertising on television this year, up 30% over the 2006 midterm elections, and up 77% compared with the last presidential election in 2004.

The presidential candidates alone are forecast to spend $800 million on television ads.

Of course, in many cases, the push TV ads are sending people to the candidates’ Web sites, where they are greeted with requests for donations, e-mail addresses and campaign merchandise for sale.

“The Internet is pulling voters into conversation and interaction with candidates and issues in ways that barely existed in the last presidential election, a mere three-and-a-half years ago,” Ms. Phillips said.

The Internet may not be getting its fair share of political ad dollars yet, but in combination with television it is already being used as a powerful one-two punch—not only to raise awareness, but to raise funds, too. “This push-pull model created by political marketers is a tactic marketers in many categories could profit from,” said Ms. Phillips.

To find out about other innovative ways political marketers are using the Internet, download the new eMarketer report, Politics ’08 Online: Push Meets Pull, today.  

Source: eMarketer.com