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Ad spending moving from portals to vertical sites

According to a report by US-based digital advertising agency Avenue A/Razorfish, the share of client dollars it spent on portals dropped from 24 per cent in 2006 to 19 per cent in 2007, while search share rose to 31 per cent from 28 per cent, vertical sites rose to 39 per cent from 37 per cent, and spending on ad networks was flat at 11 per cent.

According to a report by US-based digital advertising agency Avenue A/Razorfish, the share of client dollars it spent on portals dropped from 24 per cent in 2006 to 19 per cent in 2007, while search share rose to 31 per cent from 28 per cent, vertical sites rose to 39 per cent from 37 per cent, and spending on ad networks was flat at 11 per cent.

While commenting on the findings of Avenue A/Razorfish’s report, Amar Goel, founder, Komli and PubMatic, writes on his blog, “2007 might just be the tipping point for the maturity of the online advertising industry in the US away from the mass-market, generic solutions offered by the portals. And like the data shows, it looks like we are tipping to a world where these niche communities and/or technologies take up the baton and lead the race of the next 10 years of online advertising.”

“Portals to compete in this new world need to build/buy vertically oriented sites and keep them separate (to keep their high quality audience from being diluted by the portal audience), or to buy ad networks that recreate niche or technical targeting. And if you’re a vertically oriented site or ad network you are like a brand new cable network — you are looking good as long as you stay focused!” adds Amar Goel.

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