Online advertisement budgets will continue to grow

Posted by Toni Anicic under Online Marketing @ 6th NOV 2008

Most of the researches show that online advertisement, despite economic recession, will continue to grow. According to IAB’s Internet Advertising Revenue Report, first half of ‘08 was up by 15.2% compared to the same period in 2007. According to the same report, most of the revenue of online advertisement (44%) is generated by search engine advertisement followed by display adds (banners, rich media, digital video, sponsorship) which generated 33%. The last place is reserved (as usual) for e-mail (2%).

Why do people continue to expend their budgets for online advertising?

It’s all about control. Compared to the advertising in traditional media, online marketing offers more control over your budgets. When advertising online you can see exactly how much costumers has any of your adds broth to you and thus for you can cut your resources on campaigns that produce low conversions.

Also online advertising is in many cases much cheaper then advertising in traditional media witch means you can advertise more cost effectively. If you invest the same amount of money in to traditional media advertising and online advertising you will gain much more money from online advertising.

However, if you are thinking about massive amounts of money and branding an huge international corporation you will still need to rely on traditional media.

According to a June McKinsey & Co. survey, 91% of 340 senior marketing executives worldwide are using online advertising. Due to economic recession 55% of them are going to cut traditional media advertising budgets precisely in order to increase budgets for online marketing.