Online Marketing Strategies from MarketerInsight

Online advertising growth rises again

According to a recent analyst report, the speed of online advertising’s growth, its benefit to offline campaigns, and recent online ad spending increases from major marketers all seem to be converging. Here’s the online advertising supporting stats:

> Online media spend average is 5% up from 3% last year
> Spending growth expected to accelerate to 10% faster than expected
> $55 Billion globally - estimated online advertising by 2010
> Equivalent to a 27% compounded annual growth rate over 2005

So what about Search - is it becoming intertwined? Read on…

Piper Jaffrays analyst, highlighted in his report that search and online advertising are becoming increasingly intertwined benefiting each other instead of competing.

> 10% of Search Spending is now done for branding impact
> Inventory continues to expand; there is no shortage of inventory in sight

Reinforcing the trend of allocating more to online advertising, large players like Absolut Vodka, GM, and Ford all plan to spend 20% of their marketing budgets online in 2006. Of course the big winners will be Google and Yahoo!, but additional online advertising spending will still occur with networks and vertical sites.

We are repeatedly asked what the right blend is between online and offline channels. And what is the point of diminishing return of online branding to direct response. In short, WebsiteBiz advocates a blended approach based on testing, analyzing, and adjusting online advertising; one that maximizes Internet channel performance and our clients overall return on marketing investment.