Online Fastest Growing Advertising Medium
Monday, February 5th, 2007;
-- Jordan McCollum |
Outsell, Inc. has released a report that seems to indicate that we are reaching the end of an era: they project broadcast and print ad spending will decrease in 2007. Key findings of their survey of 1010 advertising professionals include:
- Online spending growing the fastest: companies plan to increase online spending by 18% this year as online advertising’s market share increases to 20% of advertising spend.
- Advertisers perceive online advertising as “very effective†for branding, a reversal of their “conventional wisdom.â€
- Search marketing is the fastest growing online medium: advertisers plan to increase search engine advertising spend by 39% (though Outsell didn’t indicate whether this was SEO, PPC or both in its press release).
- PPC ads’ market share will actually decrease 1% this year; other online media will grow (CPA ads: 8%; “online sponsorships†12%).
- Why is PPC falling? Ten guesses. 49% of advertisers will or have already reduced PPC spend because of click fraud concerns. Plus, they think their websites and e-mail marketing are more effective. (But do they have data to back that up?)
In the non-Internet related areas, Outsell found:
- Print still holds the largest market share of ad spend (40%), but its slice of the pie is shrinking.
- TV/radio/movie ad spend will decrease 3.5% this year.
- Overall advertising projected growth: 5.8%; overall advertising projected spending: $6.5 billion.
There’s a definite shift in the advertising world, but it’s a continuation of the trend from last year. The change will most likely continue to be gradual—and probably not entirely attributable to trying too hard in the Super Bowl’s commercial breaks.
(Speaking of which, underwhelmed with the Super Bowl’s ad offerings, Seth Stevenson of Slate’s Ad Report Card asks, “Are we seeing the end of an era? And will we even miss it?†However, his individual assessments were pretty positive. Search Marketing Gurus and E-Marketing Performance have round ups of the ads as well; amazing how subjective advertising assessment can be. Sounds like the commercials need some analytics.)
Similar posts you may like...
Save & Share: 
Category: Research, SEM Industry
Forward: Email This Post
February 5th, 2007 at 10:14 pm
[...] Posted by ebenthurston on February 6th, 2007 Online Fastest Growing Advertising Medium | Marketing Pilgrim Outsell, Inc. has released a report that seems to indicate that we are reaching the end of an era: they project broadcast and print ad spending will decrease in 2007. Key findings of their survey of 1010 advertising professionals include: [...]
February 6th, 2007 at 9:20 am
Andy - great stats - thanks for the post. I’m not surprised to see online spending on the rise. I’m pulling more money from print this year than ever before. The return from the online ad is greater and more measurable.
February 6th, 2007 at 10:59 am
[...] According to an analysis by Jordan McCollum, perceptions of click fraud could be a key reason for advertisers shunning increases to PPC budgets. [...]
February 11th, 2007 at 9:22 am
[...] There are some people who are stuck in the past and still do not accept that online advertising is growing as quickly as reported. (They are generally luddites anyway ).A recent report has confirmed the growth once again and in 2007, they’re even predicting that broadcast and print ad spend is going to DECREASE in 2007. More info here at Marketing Pilgrim (an excellent site). [...]
February 11th, 2007 at 9:25 am
Thanks Andy - very interesting. I am trying to convince people at work that we need to be doing WAY more online, but we are not in the consumer area, we are in healthcare, specifically focusing on nurses and procurement staff. I will keep trying!
February 13th, 2007 at 4:46 pm
[...] Online Fastest Growing Advertising Medium « PayPal vyrážà do útoku proti Google Checkout badge = ‘ Linkuj.cz | ’; badge += ‘ Jagg.cz | ’; badge += ‘ Vybrali.sme.sk’; document.writeln(badge); var com_rss = “”; document.writeln(com_rss); [...]
February 25th, 2007 at 9:58 pm
SEO the next big thing, oh it is already big