January 08, 2008 | Tuesday
It’s all online for clever advertisers
By Jackie Danicki - Blogger in Marketing |News
Three new forecast reports released in the past few days really drive home just how much marketers value online over all other forms of advertising.
WPP’s GroupM unit has published its prediction that by 2009, online will be the dominant ad medium in the UK. Their forecasts show the internet accounting for almost 25 per cent of all British ad spend by the end of 2008, with TV holding on to 26 per cent. They predict that online will leap in front in 2009, and assume Internet ad spending in the U.K. will grow 30.8% during 2008 to $6.7 billion vs. a 1.0% rate of growth for television, which will climb to about $7.0 billion. Additionally:
The GroupM analysis assumes online ad spending would need to climb 6% or more during 2009 to overtake the market’s television advertising volume.
As GroupM expects online to do just that, it is now a matter of guessing how far above 6 per cent internet ad spending will hit.
Yesterday, the TNS Media Intelligence full-year forecast predicted a 14.4 per cent growth for internet display ads in 2008. While this takes into account only display and not search, it is yet another indication of why so many marketers are shifting their spend onto more effective marketing online.
So just how many are doing that?
Also yesterday, the twice-yearly Advertiser Perceptions survey results were announced, showing an improvement on last year’s numbers for marketer optimism in online advertising. Overall, 76 per cent of marketers polled expect to increase their online ad spend in 2008, in stark contrast to almost every other category of advertising. (Mobile, in which 55 per cent of respondents expect to increase their ad spend, was the only medium that came close to online for optimism.)
Look for marketers to depend upon the web even more if the expected economic downturn comes to pass, as it will be more important than ever to squeeze as much value as possible from every pound and penny spent winning new customers. But as these numbers show, most marketers are not waiting for hard times to make the most of online. Are you?
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