Online Advertising Poised for a Big 2008
By: Spencer Rascoff, CFO & VP of Marketing | November 28, 2007
Lehman Brothers put out a great research report today with their 2008 advertising forecast. Since Zillow is a media company, we take great interest in macro advertising trends, especially online advertising trends. Here are a few nuggets from the report:
- $311 billion in US Advertising in 2008, up 4% versus 2007
- $26 billion in US Online Advertising in 2008 (source: Interactive Advertising Bureau), 24% more than in 2007. (No surprise here: online is growing much faster than other forms of advertising.)
- The Internet still only accounts for 8.4% of all US advertising spend in 2008 (up from 7.1% in 2007), despite the fact that the Internet accounts for 28% of all media consumption (source: Forrester). In other words: Online advertising is still much smaller than it should / will be.
Lehman Brothers takes the words right out of my mouth when they write in the report:
“We believe Internet advertising will be the most resilient among the major advertising categories during a recessionary period, as the category should continue to benefit from the overall secular shift of advertising dollars to online as marketers look to efficiently capitalize on shifting media consumption patterns and focus on reaching the consumer in a more relevant and targeted manner. While the Internet represents 19% of total U.S. media consumption, despite accounting for ~7.1% of 2007 total U.S. advertising expenditures according to our estimates, we believe time spent online is likely to increase going forward as the Internet currently represents 28% of media time for the 18- 26 year old demographic (Forrester Research). Additionally, with the measurability and ROI capabilities associated with advertising online we believe the medium is likely to attract new advertisers, while expanding the spend of current ones, as an increasing number of advertisers turn to the Internet to efficiently boost their reach and frequency, especially during a more challenging macro-environment.”
And for the finale, one last data tidbit that I personally found quite fascinating: $1 billion will be spent in 2008 advertising campaign elections, $850 million on the presidential race alone. (source: CMAG and Lehman Brothers)
If you want a copy of the report, email me at spencer at zillow dot com.
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- Categories: Advertising
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Zillow.com | One Day, One Job on November 29, 2007 6:07 am
[…] how does Zillow make money? Advertising. Skeptical of that business model? Lehman Brothers isn’t. Like we already said, the real estate industry has a lot of catching up to do online, and Zillow […]
Gainesville Realty on November 29, 2007 7:29 am
Zillow is an interesting app, and it’s fun to poke around on it, but they’re going to really need to step it up if they want to be the be all real estate web site. The fact is not many people list on them, unlike yahoo and realtor.com who have been around for a while. If there isn’t many listings, people won’t use it. They also have a lot of market share to win in the FSBO market.
Michele on November 29, 2007 10:00 am
Hi, this has nothing to do with the above post. Sorry for that. But I need help. I need to have all my profile and all my private information removed from Zillow. I wasn’t aware that just one Google search and there I find private info I don’t want anyone to see.
I went to the discussion board a week ago with this request, but no one wrote back to me or seems to have taken any action. Could you please help me?
Drew Meyers on November 29, 2007 10:50 am
Michele-
I will follow up with you offline.
Tom Kratsch on November 30, 2007 10:02 am
Please fix my Zestimate. This address is the EXACT same (new construction in 2006) home in my home development. 15213 84th Avenue Ct E Puyallup WA 98375
My address is 15302 84th Ave E., Puyallup, WA 98375
My Zestimate should be the same….$476,000.
Please fix ASAP.
Drew Meyers on November 30, 2007 12:06 pm
Tom -
I apologize, but we do not change Zestimates manually — it is a completely automated process that factors into tens of thousands of data points for any given home. There are several differences in the home facts of these two homes that are leading to differing zestimates — the big difference being in the tax assessed values.
15213 - 5 bedrooms, 2006 assessed value of $411,600
15302 - 4 bedrooms, 2006 assessed value of $231,400
There is a “Sticky” in Zillow Discussions that addresses this topic - Click Here to read it
Julia Beckman on November 30, 2007 3:25 pm
I so appreciate being able to have a real estate property featured on your website. However, when I listed it a couple of weeks ago, an incomplete address got printed. I’ve tried everything to change it, but can’t. I can edit everything else, so it’s quite frustrating. Please help! The home is at 29 W. 57th Street, Westmont IL. Only “29” got entered. Other information is correct, so if you can just add “W. 57th Street, Westmont, IL” that would be wonderful
Thanks!
Julia Beckman
Shelley on November 30, 2007 3:33 pm
Drew,
I would like to speak with you or someone who could help me with the many feed issues my company is having with Zillow. Could you contact me offline?
Thank you
Drew Meyers on November 30, 2007 3:58 pm
Julia & Shelley-
Someone from Zillow will contact both of you offline.
Tom Kratsch on November 30, 2007 4:25 pm
Drew, Interesting since Pierce County’s 2008 assessed value for 15302 84th Ave E. is: (Zillow needs to move past 2006, try 2007 and now we are into 2008 assessments.
15302 84th Ave E. (my home)
Parcel #6025130070
Tax/Assessment
Current Tax Year: 2008
Taxable Value: 359,200
Assessed Value: 359,200
The SAME home with the Zestimate at $476,000 is:
Tax/Assessment (parcel #6025131010)
Current Tax Year: 2008
Taxable Value: 363,500
Assessed Value: 363,500
Go to Pierce County’s website. Do the research and post the ACCURATE information.
http://www.co.pierce.wa.us/pc/abtus/ourorg/at/at.htm
Both the homes above are the SAME EXACT 5 Bedroom home built by
http://www.carbonriverhomes.com/oaks_plat.php
Both homes are the Linden model. My home is on Lot 7 and the SAME HOME MODEL which you have a Zestimate value at $476,000 is on lot 101.
Check out Pierce County’s assessed values on their websites, check out the Carbon River Homes plat/Brookfield Farms development details and then let me know what additional FACTS you need to make an INFORMED decision on changing my Zestimate and home facts information. Let me know if you need assistance with navigating the websites above.
Minnesota & Wisconsin Lake Property on January 17, 2008 6:50 pm
zillow and other websites are help both buyers and sellers a lot