Online Ad Share Jumps to 20%; Search Engine Ad Spending to Grow at 39%
Overall U.S. advertising is forecast to grow 5.8% in 2007. Advertisers also plan to raise their spending for advertising on search engines by 39%, the fastest of any online media method.
Outsell report is based on a Web-based survey of 1,010 advertisers, who control about $6.5 billion of spending, and looked at five media types—online, print, events, TV/radio/movies, and other.
Other Highlights from Outsell's Report:
- Print, the largest recipient of ad dollars at 40% share, will continue to lose share while online’s ad share grows to 20%.
- The share of TV/radio/movie ad spending will decline about 3.5% this year.
- Advertisers’ share of online spending for pay-per-click (PPC) ads will fall 1% in 2007, while cost-per-action ads’ share will grow 8% and online sponsorships’ share will rise 12%.
- 49% of advertisers have reduced or plan to reduce their PPC spending because of click fraud, up from 37% in the Spring of 2006.
- Advertisers rate their own Web sites and e-mail marketing more effective than search engine ads, additional drivers in PPC’s slowdown.
- Advertisers rate online advertising very effective for branding
- Advertisers are redirecting more trade magazine ad dollars to events than they are moving to paid search.
Related: Online Forecast to Hit 20 Percent of Total '07 Ad Spending - ClickZ