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BizReport : Advertising archives : July 27, 2009

LinkedIn/Harris: Ad budgets move online but ad formats still annoying consumers

In one of the first pieces of research to come out of a new partnership between LinkedIn and Harris Interactive, it has been revealed that consumers and advertisers have very different views on the types of advertising they believe works online.

by Helen Leggatt

The LinkedIn Research Network/Harris Interactive study reveals what most already know - Internet advertising is attracting a greater share of advertisers' budgets. The majority of advertisers (92%) are now using Internet advertising in their media campaigns compared with 88% that are using print.

Of those who use Internet advertising just 14% use it for standalone campaigns, found the study (.pdf). Just over half (54%) use Internet advertising as part of a larger, integrated campaign with other media.

Meanwhile, consumers aren't particularly won over by Internet advertising. In fact, 80% of consumers surveyed for the study said they find online formats that expand on the page and cover the content "very frustrating", three-quarters said the same about pop-up ads, and two-thirds are very frustrated by ads that open when moused over. Three in five had the same to say about automatically launched animated ads and soundtracks and almost 80% disliked ads on which the "skip" or close button was hard to find.

So, while the Internet is fast becoming advertisers' medium of choice, many formats aren't popular with consumers. "At least three in five consumers are very frustrated with six of the main Internet advertising characteristics, and there is the potential to see a backlash forming," states the report. "To be successful, those that advertise on the Internet will need to come up with more engaging ways to connect with consumers."

Media research firm Outsell Inc. recently revealed findings from their annual marketing study which predicts $65 billion will be reallocated from traditional ad channels to company websites and online marketing.

In an interview with Forbes, Outsell's chief executive, Anthea Stratigos, said that "the marketing dollars companies now spend on their own sites is equivalent to all TV ad revenue for the year. Eight years ago we said that the Global 2000 would be the dot-coms of tomorrow. That's what's playing out."

Tags: ad format, advertisers, budget, Harris, Internet advertising, LinkedIn, online, Outsell, pop-up ads

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