September 28, 2006 at 18:52"The Economist" promises online advertising growth in all respects
The Analyst at The Economist presented the results of a joint study with Google in an attempt to determine the future of online and offline marketing. In the course of work, experts from 200 large corporations were interviewed, 70 of which annual turnover exceeds $ 5 billion.
According to the study, 56% of the companies surveyed spend 1-5% of their annual revenue on advertising. Others have 22% more expenses, and make up 6-10% of income. Directly on online advertising 51% of respondents spend 1-5% of the total marketing budget, 17% give 6-10% of the budget. And only 8% do not spend a cent on advertising on the Web, but two years ago their number was more impressive - then 43% of companies saved on the Internet.
In the next two years, costs for network campaigns will increase almost 88% of the polled corporations - this is the highest indicator among media carriers. They will invest more in direct mail (39% of respondents), magazine advertising (34%) and sponsorship (53%).
Of the budget allocated for online advertising, most of the money (25%) is now spent on e-mail marketing. 15-13% of the money invested in banner advertising, sponsorship and search engine optimization. 7% give for search and rich media advertising. In a couple of years, the largest percentage of funds on the Internet - about 16% - will be given under sponsorship. Investments in banner advertising will decrease to 10%, and in search engine optimization - will increase to 15%.
For most companies, the main motive for advertising on the Internet is brand development. In a commentary on the study, The Economist analysts noted that interactive tools that allow users to receive information about products and services over time become brand assets themselves.
Explaining the results of The Economist, Patrick Keane, director of Google’s field marketing department, noted that many marketers are now purposefully adapting to the new media landscape, setting budgets and teams to take advantage of the digital world. According to him, Google realized that the number of people who do not feel the difference between the online world and the real world is constantly growing. The company received $ 6.14 billion in revenue last year, 98% of which came from advertising, and this makes us pay close attention to every thought emanating from its marketing departments.
According to the study, 56% of the companies surveyed spend 1-5% of their annual revenue on advertising. Others have 22% more expenses, and make up 6-10% of income. Directly on online advertising 51% of respondents spend 1-5% of the total marketing budget, 17% give 6-10% of the budget. And only 8% do not spend a cent on advertising on the Web, but two years ago their number was more impressive - then 43% of companies saved on the Internet.
In the next two years, costs for network campaigns will increase almost 88% of the polled corporations - this is the highest indicator among media carriers. They will invest more in direct mail (39% of respondents), magazine advertising (34%) and sponsorship (53%).
Of the budget allocated for online advertising, most of the money (25%) is now spent on e-mail marketing. 15-13% of the money invested in banner advertising, sponsorship and search engine optimization. 7% give for search and rich media advertising. In a couple of years, the largest percentage of funds on the Internet - about 16% - will be given under sponsorship. Investments in banner advertising will decrease to 10%, and in search engine optimization - will increase to 15%.
For most companies, the main motive for advertising on the Internet is brand development. In a commentary on the study, The Economist analysts noted that interactive tools that allow users to receive information about products and services over time become brand assets themselves.
Explaining the results of The Economist, Patrick Keane, director of Google’s field marketing department, noted that many marketers are now purposefully adapting to the new media landscape, setting budgets and teams to take advantage of the digital world. According to him, Google realized that the number of people who do not feel the difference between the online world and the real world is constantly growing. The company received $ 6.14 billion in revenue last year, 98% of which came from advertising, and this makes us pay close attention to every thought emanating from its marketing departments.