Advertisers shun tradition for the Web
For being able to offer better targeting and return on investment, advertisers will give their money to the Web by taking it away from traditional channels like print and TV.
Such is the finding from the European Interactive Advertising Association, which found seven out of 10 advertisers have increased their online spending so far this year.
The Web was rated ‘essential’ to marketing for almost half the responding companies, compared with 38% and 17% saying the same in 2008 and 2006 respectively.
As a result, online spending was projected to rise by more than 21% next year and by 15% in 2011, the association’s internet advertising barometer shows.
To make the investment in digital, companies will pull their budgets from TV (37%), newspapers (32%) and magazines (46%), indicating traditional channels will suffer.
Yet interestingly, budgets for direct marketing and radio were only cited as being reallocated to Web campaigns by 24% and 12% of the respondents, respectively.
The same shift in advertisers' priorities was picked up in the latest Bellwether report by industry body the IPA, though it said internet spend took a record cut this year.
However, underlining the comparative resilience of the Web, the IPA said the cut was at a much weaker rate than the slump in total marketing spend in the first quarter.
In spite of also saying ad budget cuts appear to be over their peak, as advertisers were increasing their optimism, the IPA believes UK ad spend will fall by 9% this year.
The budgets hardest hit so far this year were for main media advertising and ‘all other’ promotional channels, defined as PR, events sponsorship and market research.
The brightest future for ad personnel appears to be at US-based B2B firms focusing on social media, as Forrester predicts their budgets will increase by 34% in 2009.
The forecast implies B2B firms took the analyst’s earlier tip that spending in the space is vital to reach the 77% of decision-makers whose jobs involve social networks.
Editorial image courtesy of Jolante
28th April 2009