2007 Online Ad Budgets Expected 42% Up; Major Shift from TV to Online

Most leading ad executives expect a significant portion of broadcast and cable TV ad dollars to shift to online video by 2010, with 33% predicting that switch will be between 10% and 19%, according to a study conducted for the American Advertising Federation (AAF). 

In addition, 2007 budgets for online advertising are expected to rise by an average of 42% over 2006. As to the challenge of integrating traditional with online media, broadcast TV is seen as offering the "most innovative" integration with online media, while magazines are seen as "most effective" for driving consumers online.

  • Search was deemed the "most effective" new media option and, not surprisingly, is expected to take the greatest share of the 2007 media budget. 
  • Industry leaders feel strongly (71%) that the online medium is "very effective" or "most effective" for direct response advertising, but note that there is difficulty reaching key demographics, particularly older audiences, online. 
  • Industry leaders rated Dove, Burger King, Volkswagen, Honda and Nike as the most successful recent integrated advertising campaigns.

Additional findings include the following:

  • The top campaigns of the year were (in order) Apple Mac and Geico (two-way tie); Dove; Budweiser, Target, Mini Cooper (three-way tie); Apple iPod; and Aflac Insurance.
  • Top brands are (in order) Coca-Cola, Nike, Apple, Starbucks and McDonald's.
  • The most respected industry leader was David Ogilvy, followed by Bill Bernbach and Lee Clow.
  • The most important factor in achieving success in the industry is "dedication."

Prepared by Atlantic Media Company, the fourth annual AAF Survey of Industry Leaders on Advertising Industry and New Media Trends offers significant insight into attitudes among high-level industry leaders regarding new media, the demands of the industry and the importance of mentoring.

The AAF Survey of Industry Leaders on Advertising Industry and New Media Trends compiled the responses of 168 industry leaders who represent all sectors of the industry, with over 58 percent having worked in advertising for more than 16 years. A full analysis of the survey is available here (PowerPoint document).

The survey was released in conjunction with the Advertising Hall of Achievement in New York City. The event featured a lineup of influential industry CEOs and top-level executives who are recipients of this prestigious award.

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