Online ad spending increasing

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Online ad spending increasing

January 10, 2006

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Online advertising spending is to increase 32 percent over 2005 to $16.6 billion.

In a recent market study conducted by TNS Media Intelligence, 100 CMOs at Fortune 500 companies were asked in November how they were planning to divide their ad dollars in 2006.

The results were released in a report by Credit Suisse First Boston.

The growth in projected spending is partly a result of online being viewed as a preferable ad channel because it is accountable.

"The largest number of survey participants believes that Internet advertising methods have the highest perceived return on investment, significantly ahead of any other category," the report said.

It is also the result of top advertisers following behind the behavior of their customers.

While major brands plan to increase their online spending, the entire ad market is still spending only 5 percent of budgets in online advertising.

Credit Suisse projected that the overall percentage will increase to 6.5 percent in 2006.

Source: Marketing Daily

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