Internet Advertising Expected to Double

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According to a report released by Internet Marketing research firm eMarketer, Internet advertising spending by US advertisers is expected to double by the year 2011. This is bad news for traditional advertising methods such as newspapers, television and magazines.

Internet advertising includes methods such as:

  • Display ads (banner ads seen on web sites)
  • Paid Search ads (also known as Pay-Per-Click or PPC and includes Google AdSense)
  • Rich Media (Online video advertising)
  • E-mail advertising (Ads embedded in e-mail)

One of the main benefits Internet advertising has over traditional advertising is the ability to track the advertising campaign results in ways that you simply cannot do with ads run in newspapers, magazines and on television. An ad placed in traditional print advertising provides no guarantee that even a single person will see your ad. The best “guarantee” that a newspaper or magazine can give is when they tell you the size of their circulation and all that really means is that they will print your ad that many times, not that your ad will be seen that many times.

Ditto for television advertising, especially with Ti-Vo, DVR and other similar methods available for skipping commercials.

This type of thinking is probably a big reason why traditional marketing budgets are being trimmed by US companies.

Internet AdvertisingIn 2006, Internet advertising accounted for about $17 billion of the more than $280 billion spend on all advertising, which included newspapers, television and magazines. That is a 6% share of the market. In 2007, that dollar amount increased to $21.4 billion of the $287 billion total or a 7.4% share. As the accompanying chart shows, eMarketer predicts that the trend will continue to increase, doubling by 2011.

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