Moving On Up: Online Ad Spending

    December 6, 2006

Budgets for online advertising get a major lift in 2006.

Advertising business online is a cost-efficient and effective way to market a company or product, with the number of internet users in the U.S. alone being well over 150 million.

It should have come as no surprise to market insiders that advertising expenditures totaled over $7.2 billion, which is over a billion dollars more than the previous year’s total of $6.1 billion, for the first nine months of 2006 alone.

According to TNS Media Intelligence, that is a 17. 9 increase over the same period last year; topping the previously estimated lift of 9.1 percent.

TMS MI President and CEO Steven Fredericks told Clickz that, “It’s share of voice has gone from 5.8 percent last year to 6.6 percent this year. We think it’s at the expense of newspapers and radio, primarily.”

Fredericks also stated that the rate of Internet advertising would grow much faster were it not for the fact that the top 50 biggest advertisers maintain their focus on traditional media, such as television and print.

Were the growth dependent upon the small and mid-size companies that currently fuel the online advertising market, the momentum would be much greater.

Joe Mandese reports that Fredericks stated that, “If you look at the top 50, they actually increased the amount of money they spent on TV,” noted Fredericks. “I’m not sure what the reason for that is, but I think it may be that staying with traditional media is just an easier thing for them to do right now.”

Perhaps those top 50 advertisers should look into focusing their budgets on online advertising, with online spending growing 26 percent over the year, totaling $13.9 billion.

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Autmn Davis is a staff writer for WebProNews covering ebusiness and technology.