Citing the fact that usage of the internet takes up about 20% of media consumption yet that only 7.5% of ad budgets are devoted to the online arena, The Yankee Group is estimating that the budget share for online advertising will reach 15% by the year 2011. Yankee is also saying that the amount spent online per person will equal to three-quarters of what it spent on television. In 2006, the ratio has online spend amounting to less than one-third than that of television.
Mark Walsh of MediaPost writes:
Helping drive the online shift will be improved ad targeting, an array of new ad platforms, and publishers’ increased focus on “yield management”–maximizing revenue without upgrading ad inventory.
I’d add an increased focus on local regional advertising and the continued push from mainstream, traditional media outlets to bring their properties online. Hulu is one example.
Ironically, this mark of 15% may not be met because of ad agencies. Many mid-size or local agencies still resist developing true interactive capabilities beyond building a website and outsourcing low level SEM campaigns. Another potential reason this mark won’t be met is the insistence on focusing on ‘reach’, a tactic that doesn’t always make sense.
Hopefully things will change for the better and my first prediction for 2008 begins to become true.
4 Comments » Posted on January 21st, 2008 by Jonathan Trenn
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