US online marketing up 19 percent 2006

Outsell: US. Survey for 1,200 advertisers in November 2005 who control an estimated $2.4 billion in advertising. TargetB2B, B2C, and healthcare.

The online channel is now used by 80 percent of advertisers, higher than previously reported. More than 90 percent adoption by 2008. Another major finding is the shift away from traditional media due to the unprecedented power that online advertising has provided to smaller businesses. Companies with ad budgets of less than $1 million are shifting more of these budgets to high ROI online ad options. En masse, these smaller companies are denting the bottom lines of television and radio stations, as well as print media,For certain applications, however, “old media” are far from dead. For instance, trade magazines, events, and direct mail marketing are rated the top three most effective tactics for both branding and lead generation.

• Total online marketing spending will grow 19 percent in 2006, eight times the rate of TV ads and six times the rate for print ads.

• Spending on search engine advertising will grow 26 percent in 2006.

• Advertisers consider Google more effective than Yahoo! and MSN for keyword ads, and more effective than Yahoo! for contextual ads. In addition, those rating Google “extremely effective” have smaller ad budgets than those giving Yahoo! or MSN the same ranking.

Annual Ad Spending Study: Where and Why Advertisers are Moving Online Publ 20060213