Internet Ad Spending on the Rise

Internet Advertising Spending on the Rise

According to MediaPost Publications, ZenithOptimedia has revised its advertising spending forecast for the coming years. Predictions from the agency see Internet advertising overtaking outdoor and radio in the next 2-3 years. That upward trend for Internet advertising is a revision from the Dec. 2005 report. The agency notes that the Internet is the fastest-growing major medium and is now established as a mainstream medium.

In My Opinion
The growth of interactive advertising should not raise too many eyebrows. After a tumultuous “discovery” period, interactive advertising has begun to show it can deliver impressive results. What was once the domain of online only plays, traditional marketers now realize that interactive can be, and should be, a part of their marketing mix.

The real question is where does this growth come from? Are marketers adding to their advertising budgets to include interactive or are they shifting dollars from one medium to another? To get they answer, you just need to follow the eyeballs. As consumers spend less time with traditional media, the effectiveness and efficiency of those media as advertising vehicles also declines. “Old media” are being replaced by “new media” in the consumers average day, and the advertising money will be close behind. Marketers are now at the point where they are revisiting their marketing mix, and shifting budgets to follow their customers.

What This Means to Advertisers
There is no time like the present. The projected growth in Internet advertising demonstrates that current online advertisers are investing more, and new advertisers are entering the market. Establishing and maintaining an online presence should now be a priority (if it wasn’t before).

However, it is important to view this new medium as just that…new. Just as newspaper advertising metrics did not apply to radio, and radio metrics did not apply to television, interactive advertising requires a new way of thinking. Interactive advertising allows you to develop individual interactions with your customers. It lets them find you, and find what they want from you in a matter of seconds. Whether it is search, banners or podcasts, you can never expect to do things the way they’ve always been done.

Most importantly, don’t enter these waters alone. Choose a partner that can help you navigate the infinite options available and chart a course for online success.