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I posted yesterday about online ad sales growing at a steady enough pace to outpace all other types of advertising by 2011. I concluded, like Mr. Battelle that it would happen much sooner than that. But as I read further into the subject it appears as though it may be right on. At the same time online advertising is increasing, the growth of internat advertising for traditional media outlets is slowing.

My guess is as the online ad space gets more and more commoditized through systems like AdWords, Text-Link-Ads, and more the rates of premium publishers like CNet, Yahoo, and AOL are falling. Also as I discussed Monday, as the media itself gets commoditized and content is dispersed across multiple websites the rate to have an ad next to specific content is falling, since that content is far more accessible. The New York Post article seems to conclude the same:

It used to be that if an advertiser wanted to reach a lot of potential car buyers, their options were limited to buying the homepage of a portal like Yahoo! or a car review site like Edmunds. com.

Now, technology has made it easier to deliver ads to the right person at the right time across a multitude of Web sites.

New York Post - Online Ad War

This could steady the growth discussed in the report yesterday which could put them right on at 2011.

Josh Catone seems to think we should get ready for bubble talk…

Second it means we should get ready for the bubble talk. A lot of people will likely point to the online advertising collapse of the 1990s where CPM rates tumbled as a result of too much inventory.

This will be interesting to watch as Internet ad spending is set to increase while an excess inventory is being created building the possibliity of too much supply. Should be a fun ride…

Tags: Advertising, Internet, Media

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