subject: The Future Of Online Ad Spending [print this page] For the first time ever, online advertisement spending in 2010 surpassed newspaper ad spending. Concerns over the economy's slow growth appear to have been the catalyst behind the shift, according to Internet research firm eMarketer.
Online ad spending in the U.S. rose by nearly 14 percent last year compared to 2009. This is good news for B2B advertising agencies, as ad spending online is projected to continue its increase by double digits for each of the next four years, starting with a 10.5 percent improvement in 2011. The Internet's share of overall advertisement spending is expected to jump from 15.3 percent in 2010 to 21.5 by 2014.
Search Engine Optimization (SEO) is expected to continue being the primary branding advertising expenditure on the Internet; while video is likely to remain the fastest growing advertising format on the web.
Final numbers for online spending by B2B Internet advertising agencies for 2010 is expected increase by 8 percent from 2009. While B2B marketing firms are projected to put a considerable amount of financial resources into paid search over the next five years, Forrester Research Inc. also expects agencies in the B2B sector to invest more in display advertising as well as social and mobile marketing.
So what are the factors behind the growing shift to online B2B marketing? Research firms such as eMarketer attribute the increase in online advertisement spending to a growing realization by advertisers that the Internet has become the major source of information, social interaction and entertainment for many U.S. consumers.
In turn, this view has increased skepticism on the effectiveness of marketing campaigns via traditional media outlets such as print newspapers; an industry expected to see an 8.2 percent drop in ad spending revenue for 2010 followed by a 6 percent slide in 2011.
News sites: Most trusted place for ... Advertising
In the real world, most people assess whether or not to believe something based on the source. The same principle applies to online advertising.
Social networking sites such as Facebook and MySpace, and portal channels including MSN Money and Yahoo News are known for their ability to generate a large mixed demographic of user traffic.
While these sites might appear to be an exposure gold mine for advertisers, research suggests consumers are more likely to trust online advertising content found on media sites such as espn.com and nytimes.com.
A study by the Online Publishers Association (OPA) found that 15 percent of loyal media site users were likely to purchase from site advertisers, compared to 8 percent of portal loyalists and 4 percent of frequent social media users. Additionally, local ads are more likely to generate user interest on local media sites than on other local websites.
More Online Ad Spending = Slimmer Revenue Pool
With online advertising spending expected to continue its upward climb over the next few years, advertising agencies are sure to develop new creative methods of generating consumer interest.
However, content quality combined with a website's reputation will most likely remain the primary components driving consumer interest in online advertising.
by: Jon Berry
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