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Online advertising revenues grossed in excess of $5 billion in the first quarter of 2009, a small reduction in comparison with the previous year. This of course, is primarily due to the difficult economic climate and low revenues that corporations were generating. The latter essentially brings about budget cuts and almost always the first to suffer is the advertising budget. Nevertheless, the way that the advertising budget was being managed previously also needs to be assessed.

Among the biggest problems that advertisers faced was that many of their advertisements were not designed to sell their merchandise, but to earn the advertising agency an accolade, regardless of how many gross sales the advert generated. Essentially, companies had huge advertising budgets that were used without caring about the consequences. This also applied to the traditional advertising medium as well as online advertising.

The harsh economic climate has forced companies to stop and reign in their financial situation, which should have been carried out much earlier. Businesses are implementing more efficient processes and are attempting to streamline their venture for better returns on their financial investment. The result of all this is that even though there has been a slight decline in internet advertising revenue, the near future will probably bring an upsurge in those same revenues. The explanation is quite straight forward: no other type of advertising can provide such quick feedback or such an accurate analysis of the return on investment that each advertisement delivers.

Hence, even though some may feel that online advertising is much too expensive, the price versus the return is a ratio that many businesses will be more than pleased with. If online advertising is considered to be expensive, then what can a Super Bowl ad be considered as when an advertiser can't actually keep track of how many people saw the commercial let alone made a purchase as a direct result? Online advertising offers this and a great deal more.

Online advertising is quickly becoming a bonus for the marketing fraternity and the latest figures released by the Interactive Advertising Bureau show that internet advertising revenues in the United States for the last quarter of 2011 were almost $8 billion. This is an improvement of 22 % on the same period in 2010.

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