News Markets Media

USA | Europe | Asia | World| Stocks | Commodities

Home News World Popularity of Internet Advertising is Growing


Popularity of Internet Advertising is Growing
added: 2007-07-10

Despite an overall advertising slump, more ad dollars are moving online, according Mortgage Advertising Insider, Internet advertising will grow to $31 billion by 2011, IDC reported. That represents growth three times as fast as overall advertising during the period between 2006 and 2011.

While the most online dollars will go to search advertising, IDC explained the market share represented by search will drop from 40 percent to 32 percent during the period - posing "a strategic challenge to Google." A recent advertising slump resulted from a focus by big business on expenses, productivity improvements and cash buildup, according to a forecast from Universal McCann. Spending on all domestic advertising is expected to be up only 3.1 percent this year.

But Internet advertising jumped 17 percent from the first quarter 2006 to the first quarter 2007, Universal's report noted. Online advertising and search engine marketing, which were hardly considered several years ago, "have violently impacted many established media." Web advertisers can improve results from their growing expenditures by advertising across multiple online publications and not necessarily crediting the last ad seen, Jupiter Research reported.

Before clicking an advertisement and converting to a sale, Internet users first are influenced by the advertiser's message displayed elsewhere, Jupiter wrote. But most advertisers incorrectly attribute direct responsem to the last ad viewed by the user.

An analysis from the Atlas Institute seemed to support Jupiter's findings. Advertising campaigns are a success or a failure depending on the interaction, synergies and overlap of multiple online channels including banner advertising, paid search and sponsorships, Atlas found. Because advertisers attribute the buyer's behavior to the last ad seen, they are blind to the implications of users who saw their ad over multiple publications and mediums.

Atlas noted of consumers who converted, two-thirds viewed the ads across multiple publishers while 86 percent saw the ad somewhere else before converting. The report suggested analyzing campaign results based on the overall mix.


Source: PR Newswire

Privacy policy . Copyright . Contact .