Internet Ad Spending is Plummeting
Over the past year, internet advertising revenues have declined by 5.3 percent. The bulk of interactive advertising spend comes from search and display related advertising. Search alone brought in 5.1 billion the first 6 months of this year. Display advertising (display ads, rich media, digital video, and sponsorship) has brought in $3.8 billion. It is important to note that digital video has grown by 38 percent since last year.
The IAB chief said the following in a recent statement, “We are in one of the most difficult economic slumps in decades. Interactive is one of the advertising sectors that has been least affected. In recent years the digital revolution has driven a transformation of how consumers experience advertising and media. As the economy improves, we’re confident that brands will devote an even greater share of their budgets to reaching consumers as they make interactive media a larger part of their lives.” This statement encourages us to still be optimistic about internet ad spending.
It has been suggested that advertisers should continue with display ads, but not focus on the click-throughs but rather the view-through impact. A report has shown that one in five consumers who view display ads searched on the advertised brand, and one-third visited the advertiser’s site. In addition, online shoppers exposed to display ads spent over 50 percent more time than the average visitors had at these sites and viewed more pages. It also said users spent 10 percent more money online overall, and more on product categories related to the advertised brands.
The data above comes at a time when companies are leaning towards recession friendly social media marketing (Facebook, Twitter, Myspace) as a more affordable route to promote their business and services. E-commerce companies have reported that the social media marketing has increased sales and customer engagement.
By: Professional Custom Web Design in Southern California | Jackie Taferner | JT Website Design – JT Website Design specializes in professional custom website design, flash animation, ecommerce website services, and more. Located in Southern California (SoCal).
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