Advertising Online stages a comback
We’ve all seen it.
Adsense from google, pay-per-click by Yahoo, and the soon to be released MSN AdCenter from Microsoft.
There has been a recent renewed interest in online advertising.
A projected $14.7 billion dollars worth of interest for the year 2005 to be exact.
In fact, if that figure comes to be a reality, it would represent a 23% increase in spending over 2004.
In an article I read recently on news.com, a new study by Forrester Research indicates that marketers are losing confidence in the effectiveness of traditional ads.
Nearly 78 percent of those surveyed said they think search engine marketing will be more effective than traditional ads within the next three years; 53 percent said TV advertising will become less effective.
That shouldn’t be a huge shock, given that over time as broadband internet connections become more readily available (and hopefully less expensive!), consumers will spend even more time online than ever before.
What is amazing?
How about that even though marketers are spending more to reach consumers online than ever before, they are still spending 21% less than they currently do on traditional television advertising.
Forrester expects online advertising to increase to $26 Billion by the year 2010.
Now that’s a lot of interactive media.
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“they are still spending 21% less than they currently do on traditional television advertising”
I think 21% less sounds very low considering the low cost of internet advertising. Anyone
questioning the future of online advertising through Search Engines needs to check out Google’s
stock!
I do believe that the reach you have with search marketing extends far beyond what you get with advertising on television.
The cost of optimizing a site to do well in search engines for terms that people will actually use to search for your products or goods is a bargain compared to the price of TV ads.
It will only grow.