Online ad spending will lead overall ad spending with a 16 percent growth rate in 2007, according to an updated forecast.
Online ad spending will lead overall ad spending with a 16 percent growth rate in 2007, according to updated forecast figures issued by TNS Media Intelligence. TNS downgraded an earlier estimate of growth in overall U.S. ad expenditures for the year by almost a full percentage point . It now anticipates a mere 1.7 percent growth rate to $152.3 billion.
The marketing information provider estimates spending on Web display ads would grow far faster than that in any other category. The Web's closest contenders in terms of growth will be cable network TV and outdoor ads, which it anticipates will grow 5.9 percent and 4.6 percent for the year, respectively.
TNS reported earlier this month that online ad spending was up 16.7 percent over Q1 2006.
"Internet display advertising is continuing on the track that it's laid out over the last two years," said TNS SVP of Research Jon Swallen. He said online offers advantages over traditional offline media such as better targeting, lower out-of-pocket costs, and more options for small-budget advertisers.
"The continued ability to demonstrate ROI and retain accountability is attractive for advertisers, and will continue to drive budgets onto the Internet," Swallen said.
Economics, according to Swallen, is a factor in the budget cuts affecting the overall ad spend. "By and large it's a slowdown of overall economic growth, and the first quarter was certainly evidence of that," he said, though TNS stipulates the second half of the year is likely to see a return of confidence. He warns, however, that any reversal of ad budget cuts "will not make up for the lost ground we've encountered."
While the Internet spend will increase at a rate faster than all other media channels, a recent report released by JupiterResearch finds the Internet ad spend lags other media, despite increasing time spent online.
Additionally, a Q1 ad spend report released by Nielsen Monitor-Plus reported a 0.6 percent decline in U.S. ad spending across all media. Internet spending increased 31.9 percent in Q1 2007 over the first quarter last year, Nielsen Monitor-Plus found. The online category includes CPM-based image-base advertising reported by Nielsen//NetRatings.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.
September 23, 2014
September 30, 2014
1:00pm ET/10:00am PT
October 23, 2014
1:00pm ET/10:00am PT