April 1, 2009
Online Advertising Budgets Grow
The transition is happening at a slower relative pace than previously anticipated. Given the deteriorating economic conditions and the continued loss of ad-revenues by traditional media, forward momentum is great though slightly more momentum might have been expected. A report issued by the IAB and PriceWaterhouseCoopers yesterday suggests online advertising budgets increased by up to 20% in 2008 over 2007, depending on the vertical measured. Overall, the report found that digital advertising saw a 10% increase in ad-spend last year with the search marketing sector seeing the largest gains. Online video also saw significant growth last year. Though advertising channels that can be measured, analyzed, reported on and inexpensively altered are faring far better than others such as sponsorships and celebrity association, digital marketing did see a lowering of expectations as the growth in ad-spend more than halved itself last year. In 2007, digital marketing saw a 26% growth over 2006. Of all the options, both traditional and digital open to advertisers, digital marketing channels are the only ones to see any positive growth in 2008. Most notably, newspaper advertising saw a 1.8% decline last year. For digital marketers, these stats indicate that now might be the time to start advertising themselves. As more marketing firms make the leap to the Internet, competition within the sector is increasing rapidly. Fortunately, there are several venues for digital marketers to reach potential advertisers, including this one. Online radio continued to show tremendous growth in audience reach and affordability in 2008, a trend that will certainly continue well into 2009.