Discounts, Contests Drive Online Promos
According to a Borrell report (covered in eMarketer, ClickZ and MediaWeek) spending on online promotions,
inc. games, contests and coupons, is about to eclipse traditional banner- and paid-search
advertising. This trend "is going to make advertising look considerably different in the next 10
years than it has in the last 100 years."
While non-ad online spending currently accounts for 22% of overall interactive marketing spending, it is expected to triple over the next five years to more than $22 billion. This will bring it more inline with total marketing expenditures, where 60% are allocated to non-ad spending and only 40% are allocated to traditional advertising.
Meanwhile, spending on online display ads, banners and pop-ups is expected to peak this year and then begin to decline to less than half over the next four years. Spending on paid search is expected to follow a similar pattern - peaking next year and then gradually declining.
The main reason for these shifts is that marketers are looking for measurable campaign results and newspapers, magazines, radio and TV are unable to prove return on advertising investment. This provides great opportunities for local media companies to collaborate with their advertisers, instead of just selling ads.
Posted by Universal Ad
While non-ad online spending currently accounts for 22% of overall interactive marketing spending, it is expected to triple over the next five years to more than $22 billion. This will bring it more inline with total marketing expenditures, where 60% are allocated to non-ad spending and only 40% are allocated to traditional advertising.
Meanwhile, spending on online display ads, banners and pop-ups is expected to peak this year and then begin to decline to less than half over the next four years. Spending on paid search is expected to follow a similar pattern - peaking next year and then gradually declining.
The main reason for these shifts is that marketers are looking for measurable campaign results and newspapers, magazines, radio and TV are unable to prove return on advertising investment. This provides great opportunities for local media companies to collaborate with their advertisers, instead of just selling ads.
Posted by Universal Ad
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