Search Engine Ad Spending Forecast Up 39 Percent in 2007

According to the second annual report on ad spending from Outsell, Inc., U.S. advertising is expected to grow 5.8 percent in 2007. The national study of advertisers, controlling about $6.5 billion of spending, shows that companies plan to increase their online spending by 18 percent this year, faster than for any other major media type. Advertisers also plan to raise their spending for advertising on search engines by 39 percent, the fastest of any online media method.

The survey of 1,010 advertisers and media types including online, print, events, TV/radio/movies, an overview of the reported findings includes:

• While the largest recipient of ad dollars (40 percent), Print Advertising will continue to lose share as Online Advertising’s share grows to 20 percent
• Online advertising spending for pay-per-click (PPC) ads will fall one percent in 2007, while Cost-Per-Action ads' share will grow eight percent and online sponsorships' share will rise 12 percent
• Forty-nine percent of advertisers have reduced or plan to reduce their PPC spending because of click fraud, up from 37 percent in the Spring of 2006. Advertisers rate online advertising very effective for branding, contrary to common wisdom that online is effective at generating leads, but is weak for branding(
• The share of TV/radio/movie ad spending will decline about 3.5 percent this year. Advertisers are redirecting more trade magazine ad dollars to events than they are moving to paid search

Source: MediaPost

59% of corporate decision makers use the Net for information search

According to ACNielsen Corporate Decision Makers Survey 6, corporate decision makers' access to the Internet increased from 81 per cent in 2005 to 98 per cent in 2006.

Ninety-eight per cent use the internet to check Office Emails, closely followed by Personal Emails (95%) and Information Search (59%). CDMs are increasingly showing interest in online transactions, either booking online air tickets (38%), railway tickets (24%) or online share trading (15%).

In the corporate echelons, the internet is becoming one of the most attractive media, because of its speed and ability to keep people connected wherever they are. It won't be long before the Internet is the primary medium for all communications, and features at the top of any media plan.

Source:Business Standard