Wednesday, February 15, 2006
Online Advertising Growth Outpacing TV 8:1
byTV, radio and print advertising will remain vital and successful components of many advertisers’ marketing mixes. However, results from The Annual Ad Spending Study reveal that online advertising is growing eight times faster than television advertising, and six times faster than print advertising. A previous Credit Suisse report highlighted last month here on Sunblog, had also indicated a major shift to online methods for some of the country’s biggest advertisers.
The Ad Spending Study confirms the hyper growth of online advertising, but it still shows “events” and traditional media options as vital parts of most companies’ marketing portfolios. The study reveals 80 percent of respondents allocate money to online advertising and predicts this figure will approach 100 percent in the next few years.
The findings came from a November 2005 survey of 1,200 advertisers. According to the survey, the respondents control an estimated $2.4 billion in advertising. The research was conducted by Outsell, a research firm located in Burlingame, California.
There is an interview with Outsell’s lead analyst, Chuck Richard, on Media Life. Asked why there is so much movement to online advertising, Richards responded, “The tracking is a huge plus, the ability to know what you’re getting for the money you’re spending. You don’t have to run a campaign and wonder if you’re getting what you want. You can count clicks and impressions.”
