Online Fastest Growing Advertising Medium
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 advertisingâ€™s market share increases to 20% of advertising spend.
- Advertisers perceive online advertising as â€œvery effectiveâ€ for branding, a reversal of their â€œconventional wisdom.â€
- Search marketing is the fastest growing online medium: advertisers plan to increase search engine advertising spend by 39% (though Outsell didnâ€™t indicate whether this was SEO, PPC or both in its press release).
- PPC adsâ€™ market share will actually decrease 1% this year; other online media will grow (CPA ads: 8%; â€œonline sponsorshipsâ€ 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 gradualâ€”and probably not entirely attributable to trying too hard in the Super Bowlâ€™s commercial breaks.
(Speaking of which, underwhelmed with the Super Bowlâ€™s ad offerings, Seth Stevenson of Slateâ€™s Ad Report Card asks, â€œAre we seeing the end of an era? And will we even miss it?â€ 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.)