Big Profits for Big Telecom as Internet Advertising Spending Rises

There is big money to be made on the Internet, no breaking news there, but have you noticed the huge increase in online advertisements?

Currently, the Internet is the fastest growing recipient of advertising dollars; in 2010 alone, Internet ad sales grew by 15% - a figure that is higher than what experts had predicted. Although television continues to sell the most advertising space (approx. $60 billion of the U.S. advertising market this year), online advertising spending is growing at a much higher rate than any other sector. In the US, Internet ad spending is expected to reach $30 billion US this year.

As Internet use increases, so will online advertising spending, and the nature of advertising will change profoundly in turn. Big telecom companies are realizing the impact of this new trend, and are acting fast to stay on top and eliminate the competition. Extensive vertical integration – a situation in which one company owns both content and the means to disseminate it – gives conglomerates an incentive to shape Internet traffic in such a way that they give their own content undue preference.

As online advertising grows more widespread and more effective, and as long as the CRTC remains unwilling or unable to prevent it, we can expect anti-competitive behaviour to continue. No wonder Big Telecom is so unwilling to share the Internet with competitors!

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Stand up to Big Telecom and demand a more open, affordable Internet HERE.