Digital marketing continues to show strength in the first quarter of 2011. While search marketing decelerated as expected off of a big Q4 2010, year on year growth remains robust at 17%. Advertiser demand for Facebook’s ad products increased significantly with spend rising sharply on 40% quarter on quarter Cost Per Click (CPC) growth. The display ad exchanges also rapidly expanded with Efficient Frontier’s advertisers accessing more than 300% more inventory than a year ago at 30% lower Cost Per Thousand (CPMs). This means that display advertisers are gaining both the reach and efficiency as new technologies like Real Time Bidding (RTB) become more prevalent.

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