Print and radio ad spends decrease while online rises

A national study by Outsell Inc. surveyed 1,010 advertisers and media players controlling a total of about $6.5 billion in advertising spending. The study, which covered online, print, events, TV/radio/movies and other, found that businesses plan to increase online spending by 18 percent in 2007, with search engine spend jumping a hefty 39 percent.

Key findings include:

- print, while still the largest recipient of ad dollars (40 percent), will continue to lose share as online’s share grows to 20 percent

- advertisers’ share of online spending for PPC ads will fall 1 percent in 2007, while CPA share will grow 8 percent and online sponsorships’ share will rise 12 percent

- 49 percent of advertisers have reduced or plan to reduce their PPC spending because of click fraud concerns

- advertisers rate online advertising very effective for branding, contrary to common wisdom that online shines at leads but is weak for branding

- the share of TV/radio/movie ad spending will decline about 3.5 percent this year

The results are in line with a trend of increased marketing dollars being committed to online activity, and a decrease in spending on traditional media such as print, TV and radio.

Tags: advertising spending, budgets, marketing, online advertising, print, radio, television