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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

July 27, 2006 at 11:26 AM

Advertising pie, Part 2

There’s a Forrester study that reinforces Ben Romano’s entry down below about the amount of advertising dollars going towards the Internet being low compared to the size of the Internet’s audience.

The study, in fact, was brought to my attention earlier this week by Zillow.com, the site that gives you estimates on how much your home is worth. Zillow announced on Tuesday that it had raised $25 million in venture capital.

Zillow’s business model is based on getting advertising to the site. The company said the interesting point about the study was that consumers spend more time online than with any other medium (TV, radio, etc.). In fact, they spent 34 percent of their total media time online, even though only 6 percent of ad dollars are spent online.

The logical assumption is that the gap is poised to narrow — advertisers will spend more money where people are more of their time.

The executive summary for the report can be found here.

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