February 6, 2007

Online marketing spend increases share

by Brian Turner

Computers & Internet

According to Outsell, Inc., online marketing spend continues to accelerate – with print and TV media spend predicted to decrease over 2007.

The researchers interviewed 1010 advertising professionals about overall advertising spend, which revealed the following:

- Online spending to increase 18%
- Search marketing spend to increase by 39%
- PPC spend decrease 1%
- TV/radio/movie spend to decrease 3.5%
- Increased overall spend of 5.8%

While print media still accounts for the largest marketshare, at 40% of advertising spend, internet spending will account for 20% of advertising budgets over 2007.

Interestingly, advertisers appear to be exploring different internet marketing channels for budgets, with banner and CPA models taking significant interest for branding purposes.

According to an analysis by Jordan McCollum, perceptions of click fraud could be a key reason for advertisers shunning increases to PPC budgets.

Overall, it shows that marketing spend is increasingly targeted at internet users and that traditional media remains under threat of decreased spend.

Although the figures were for the USA, we can only look forward to such forward thinking internet use increasingly prevalent among UK marketing and advertising agencies.

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Posted in: Business,Internet,Marketing