Internet advertising to continue to grow rapidly in 2007
Posted by MattE on 31 Mar 2007 at 03:34 pm | Tagged as: Marketing, Web
A report just released by emtech/Roy Morgan shows that major advertisers are set to continue their love affair with online advertising.
Ninety-eight percent of advertising agencies surveyed had placed advertising online during the past 12 months. This was a 15% increase from the 83% reported in January 2006 and a 4% increase from July 2006.
The report says advertisiers have indicated they will spend up to 22% of their total advertising dollars online in 2007, up 4% on the previous year. Perhaps more importantly there has been an increase of 15% of advertising agencies reporting they had used online advertising. This bring the total number of advertisiers who have had experience with online ad spending to 98%.
Most popular were banners and po-up ads. The effectiveness of these ads has long been regarded by many in the advertising industry as marginal and this was reflected in a three percent drop in the use of this form of advertising. Classified and search engine ads spends have remained almost constant.
The report also said that
The Internet’s “targeting capabilities†was seen by
advertisers as its greatest strength as an advertising medium, and was
mentioned by 19% of advertisers. A further 16% of advertisers viewed
the Internet’s “high accountability†as its greatest strength. Both advertising agencies and publishers reported the Internet’s “high accountability†(29% and 22% respectively) and “targeting capabilities†(15% and 33% respectively) as its greatest strengths.
The ability to track specific impressions and click through ratios even to the time of day is the main part of this accountability, in addition to the direct correlation between spend and return.
This report indicates that an evolution in how advertisiers use the internet may be about to emerge, however, with 70% of advertisers planning on including online marketing in their total media strategy, and a further 24% expected to use it as a separate strategy with its own determined outcomes, online advertising is set to have a bright future.
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