Cost effectiveness of online advertising

WebProNews writes about the increase in online ads, with advertisers spending $12.5 billion and revenues from the industry growing 34% for the year 2005. The effectiveness of online advertising has often been questioned, but with figures like these even the sceptics have to agree, online advertising has become one of the most cost efficient forms of advertising. According to the Interactive Advertising Bureau's Internet Advertising Revenue Report which is collaborated with PricewaterhouseCoopers, online advertising is here to stay and get more entrenched for newer sections of the market.

The multi-billion dollar market has been a big driver of the activities of the big Internet players. Google of course has made its fortune from online ads, which deliver 99 percent of the company's revenue.

Yahoo spent 2006 feverishly reworking its Internet ad system to more closely emulate Google's relevance model for delivering advertising to viewers. Early accounts have been favorable as ad agencies start to see greater activity on Yahoo ads.