Online ad spend set for growth

Advertisers are allocating an increasing portion of their budgets to internet marketing, a study has found.

Research from eMarkerter predicted that expenditure on online advertising will reach $42 billion (£20 billion) by 2011.

The study noted that 58 per cent of leading US advertisers increased their share of spending toward internet-based activity while reducing funding for traditional forms of media such as TV, radio, newspapers and magazines.

Search, display and classified advertising will be the marketing strategies most commonly invested by businesses, eMarketer noted.

Social networking advertising numbers could increase from a current value of $900 million to $2.5 billion in 2001, the news provider added

Author of the eMarketer report David Hallerman noted that the impact of the credit crunch and recent economic volatility may impede on expenditure by businesses on internet advertisement in 2007 and 2008.

"Reduced spending will be tempered by advertisers buying the low-cost display advertising gobbled up by mortgage companies´ shrinking marketing budgets," he said.

Meanwhile, Microsoft AdCentre today revealed that 76 per cent of UK businesses who had invested in search marketing recorded an immediate increase in sales.
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