8 Reasons Social Media is Hot

    March 5, 2007

For the past five years, the three primary search engines have dominated the online advertising industry.

The market share for search engines has brought them to virtual peak in the industry, as the effectiveness of click pay per click campaigns is questioned against the weight of click-fraud and other emerging advertising options.

All is not lost. According to a survey of 1,010 advertisers and media types including online, print, events, TV/radio/movies from Outsell, Inc the annual report on ad spending suggests:

* In 2007,online advertising is expected to grow 5.8 percent.

* Companies plan to increase online spending by 18 percent this year (faster than any other major media type.)

* Companies plan to raise spending for advertising on search engines by 39 percent, the fastest of any online media method. (which may mean new search advertising options?)

* Print advertising (the largest recipient of ad dollars at 40 percent), will continue to lose share as online’s share grows to 20 percent (watch out print media, newspapers, etc.)

* Advertising spending for pay-per-click PPC will fall one percent in 2007

* Cost-per-action ads share will grow eight percent

* Online sponsorships’ share will rise 12 percent

and one highlight of the article (which really suggest why Social Media is the place to be)

* Forty-nine percent of advertisers have reduced or plan to reduce their PPC spending because of click fraud,
up from 37 percent in the Spring of 2006.

If you consider that Google alone did four billion dollars in advertising last year, a 49 percent reduction in pay per click spending means that the Google client base alone is looking to spend almost two billion in online advertising dollars on something else.



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