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Online display ads to drive publishers' revenues in 2008

Internet display ads and online sponsorship will be the fastest-growing revenue stream for publishers in 2008, while two-thirds of firms are expected to increase their CPM income, according to new research.

The study, which was conducted for vertical search firm Convera, found 72% of publishers are predicting a rise in display advertising revenues next year, while 67% anticipate a rise in digital sponsorship levels.

In comparison, Convera said print revenues are "more likely to flatten or decrease", while 64% of publishers are expecting a rise in paid search revenue next year.

Convera, which based its findings on surveys conducted with the Association of Online Publishers, American Business Media and the Internet Advertising Bureau, said specialist publishers needed to react to changes in their industry to maintain or increase their digital market share and visibility.

Meanwhile, Convera said 80% of the people it surveyed were already using sector-specific RSS feeds, while 54% had personalised homepages.

In addition, 93% of more than 500 media and internet professionals said they would be "very likely" or "quite likely" to use search engines that focused on their specific business needs.

Linus Gregoriadis, head of research at E-consultancy, which produced the report for Convera, said: "Publishers are working hard to maximise their digital revenues at a time of shifting advertising budgets.

"Trends in digital marketing are leading towards a fragmentation of the online landscape and 'atomisation' of content. Content owners have a great opportunity to increase visibility for their content through the effective use of feeds, widgets and toolbars."

The full Convera Vertical Search Report 2008 can be found here.

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