Is Ad Spending Really Going To Decline?

Search giant Yahoo’s shocking news last week that both brand and search advertisement spending is slowing down, has not convinced all opinion leaders in the marketing world. Several decision makers in large companies have indicated they managed to get authorization for bigger budgets the second half of this year.

by Angelique van Engelen

Marketer panelists at the New York BtoB’s NetMarketing Breakfast, including representatives from IBM Corp., KnowledgeStorm and Raymond Corp., said they are going to spend more money and that they have extra budgets available for search marketing and podcasts.

Sher Taton, a senior manager-global interactive at IBM, reported that the company is raising their ad spend by 30%. “We should have a sizable increase next year as well,” Taton said.
Other participants in the breakfast said they were focusing their advertising effort at leveraging blogs, podcasting, videocasting and viral marketing techniques for lead generation.

Earlier on this month, Nielsen Media Research reported that ad spending across all major sectors had shown growth of over 5 percent in the first half of the year. Online ad spending was reported to have increased the most, up nearly 50 percent.

Nielsen reported that spending among the largest 10 ad spenders amounted to almost USD 9.8 billion, an increase of three percent, driven by increased spending by six of the ten. The largest corporate increase in ad spending during the first two quarters of the year involved AT&T, who rebranded, and increased its spending by 50 percent.

Tags: advertising spending, Nielsen//NetRatings, podcast advertising, search marketing, viral marketing

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