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BizReport : Research : December 06, 2006
Big Brands Slower to Convert Online
Online advertising is growing at faster than ever rates, but the growth could be even larger, according to some experts. That´s because some of the big brands – and big ad budgets - are increasing their online ad budget at a very slow pace. Conversely, smaller companies and less well known brands are increasing online spending at a much faster rate.
According to new data from TNS Media Intelligence, the first 9 months of 2006 saw advertisers spend $7.2 billion on online advertising – specifically display ads. That is about $1 billion more than they spent during the first 9 months of 2005, and 6.6% of the total ad spend for the first 9 months of 2006.
The TNS figures don’t factor in paid search, which is growing even more rapidly than online display ads. Display ad budgets are growing at about 18%. Paid search is growing at roughly 30%.
Steven Fredericks, president and CEO of TNS Media Intelligence said (via MediaPost), “Because advertising on the Internet is cheaper than traditional media, some of the second-tier advertisers who are more concerned about every dollar in their ad budget may be spending more online."
The breakdown for spending in 2006 is television (43.5%), magazines (19.8%), newspapers (18.7%), radio (7.5%), online (6.6%), other (3.9%).
Tags: online advertising, online display advertising, paid search
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