Online Ads: Winners and Losers

Perhaps because a Jan. 2 report (pdf) by JPMorgan Chase on Internet stocks ran 312 pages, it took a while for many bloggers to digest it. “Nothing but Net,” written by Imran Khan, a stock analyst, and his team at the investment bank, predicted that Internet stocks were in for a great year, thanks in part to higher earnings, wider adoption of broadband, growth in e-commerce and growing revenues from online advertising.

It was the point about online advertising the caught the eye of several bloggers. The cost of ads per 1,000 viewers “bottomed out” in 2007, averaging $3.31, according to the report. This year, it predicted, ad rates will start to rise, reaching $3.86 by 2011.