Posted February 5, 2007 5:32 pm by with 7 comments

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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.”
  • 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.)