Almost half (48.2%) of American manufacturing executives reported that the largest percentage increase in their 1998 marketing budgets will go to buying Internet advertising, according to a new survey.
Another 42.4% of the 400 companies surveyed indicated that specialty, business-to-business trade magazines will garner the bulk of their increased marketing budget this year, according to the monthly Cahners Business Confidence Index (CBCI).
Less than 10% expect that the largest spending gains will accrue to general interest magazines, broadcast/cable TV and radio.
“Hardly a blip on the marketing radar screen just two years ago, it’s increasingly evident that advertising on the World Wide Web and online services, in general, has begun to draw the attention–and ad dollars–of even tradition-bound, low-tech manufacturers,” said Cahners economist Daryl Delano, chief author of the study.
In February 1997, 40% of CBCI respondents said they expected the Internet to be the fastest growing media segment for market spending during 1997.
“Results of the latest survey suggest that marketers consider Internet advertising increasingly cost-effective. The survey results also suggest that the smaller the business, the more ‘bang for the buck.’ Internet advertising seems to be viewed as a way of leveling the playing field,” Delano said.
Cahners Economics is a unit of Reed Elsevier Business Information, a provider of business information and a large largest publisher of business-to-business magazines.
The survey data is available here.
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