May 9, 2006 Comments
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Bubble, bubble, toil and trouble. Online ads could someday double? That may be going a little too far, but the truth is that report after report continues to tout the continued rise of online advertising and it doesn't look like it's going to slow down any time soon. CNet's Elinor Mills reports that solid big name advertisers like Ford and Proctor & Gamble are leading the charge to invest more and more of a company's ad budget into online channels.
The article also speculates on whether or not the jump in advertising this time around will remain more stable than online advertising was during the dot com bust of the late nineties. From the article:
During the previous boom, "traditional advertisers hadn't yet embraced the medium, so growth slowed," said Denise Garcia, an analyst at WR Hambrecht + Co. "That's not going to happen again because Procter & Gamble, large auto manufacturers and other companies have said they are decreasing spending on traditional media, like television, in favor of online media."
Ford Motor, for example, dropped its magazine ad allotment from 23.5 percent to 21 percent last year but increased its spending on the Internet to 3.5 percent from 3 percent, according to AdAge.com. The company's overall ad budget remains flat, the article said. Ford, General Motors and Absolut Vodka all reportedly plan to spend 20 percent of their marketing budgets online this year.
Online advertising still represents only about 5% of the overall ad spend, but that number continues to slowly and steadily grow. Even apart from the major players, that trend reflects what I'm seeing. More and more small businesses shifting their own advertising dollars from under performing mediums like newspaper ads and the yellow pages to paid search advertising and other online mediums.
Jennifer Laycock is the Editor of Search Engine Guide, an educational web site aimed at translating the search marketing world into something that small business owners can understand. Jennifer specializes in common sense search engine marketing, viral marketing and customer outreach via social media and blogs. A former search marketing consultant and in-house trainer, Jennifer’s clients have included companies like Verizon, American Greetings and Highlights for Children. Her primary clients now are a little girl named Elnora and a little boy named Emmitt.
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