Users: SBB: Here's A Terrifying Chart For Those Hoping For Lots More Growth In Online Advertising - Business Insider

Here's A Terrifying Chart For Those Hoping For Lots More Growth In...

% of Time Spent in Media vs % of Advertising Spending

Finally: We can put to rest a long time industry excuse.

It used to be that big time executives at companies like Yahoo, AOL, and Facebook could explain away ad revenues that weren't big enough or growing fast enough by pointing out that so far, online ad spending has not been proportional to the amount of time consumers were spending online, and that this was bound to change, and when it did, boom times were ahead.

The argument was: New York ad buyers are way behind the times, and they just don't get it yet.

Well, don't look now, but according to this chart Mary Meeker's latest presentation on the state of the Web, Internet ad spending, 22% of total ad spend, has just about caught up with time spent online, 26%. That ratio is fairly comparable to old mediums like TV (43/42) and Radio (15/11). Just the last time Meeker gave this presentation, the ratio was 16/22.

Attention Facebook, Yahoo, and AOL execs: Your excuse has expired. Ad buyers are spending a commensurate amount of money on your medium as any other. Now your products have to perform better.

Want to see more incredible charts from Mary Meeker? Click here >>

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