Ad Execs: Fortune 500 'Behind the Curve' in Online Advertising
on Marketing Vox
by , June 15, 2006
The American Advertising Federation's Survey of Industry Leaders on Digital Media Trends finds that although ad industry leaders believe strongly in the effectiveness of digital marketing, they don't have confidence in Fortune 500 companies' ability to capitalize on online advertising (via ClickZ blog). Some 63 percent say Fortune 500 companies are "generally behind the curve when it comes to online ad strategy," according to the AAF.
Moreover, 58 percent of ad execs say they themselves are "struggling simply to manage existing online efforts, let alone stay ahead of the curve." An overwhelming 91 percent consider online media as "empowering to advertisers, allowing the ad industry to shape its own development." Digital media's high ROI is also recognized, with 42 percent citing paid search as offering the highest ROI.
Advertising execs find blogs a riskier, less effective advertising vehicle than user-generated content sites such as MySpace, YouTube and Facebook: 62 percent say "blogs are too risky to advertise with due to lack of predictability of the editorial content," while only 53 percent agreed with the same statement about user-generated content.
The survey was prepared by Atlantic Media Company; a full executive summary of the survey results can be found here (.doc) and offers additional insights, including regarding the following:
by , June 15, 2006
The American Advertising Federation's Survey of Industry Leaders on Digital Media Trends finds that although ad industry leaders believe strongly in the effectiveness of digital marketing, they don't have confidence in Fortune 500 companies' ability to capitalize on online advertising (via ClickZ blog). Some 63 percent say Fortune 500 companies are "generally behind the curve when it comes to online ad strategy," according to the AAF.Moreover, 58 percent of ad execs say they themselves are "struggling simply to manage existing online efforts, let alone stay ahead of the curve." An overwhelming 91 percent consider online media as "empowering to advertisers, allowing the ad industry to shape its own development." Digital media's high ROI is also recognized, with 42 percent citing paid search as offering the highest ROI.
Advertising execs find blogs a riskier, less effective advertising vehicle than user-generated content sites such as MySpace, YouTube and Facebook: 62 percent say "blogs are too risky to advertise with due to lack of predictability of the editorial content," while only 53 percent agreed with the same statement about user-generated content.
The survey was prepared by Atlantic Media Company; a full executive summary of the survey results can be found here (.doc) and offers additional insights, including regarding the following:
- Online video has not yet had a significant impact on ad spend with television network upfront markets.
- Advertising industry leaders forecast expanded ad budgets across online media as a whole.
- New media platforms will get only a small percentage of online budgets next year, with social media and video getting the top percentage of spend.
- Paid search is set to increase from nine percent of the online budget in 2005 to 11 percent in 2006.
- Display advertising is set to increase from 22 percent in 2005 to 28 percent in 2006.
- Rich media will increase from 11 percent in 2005 to 13 percent in 2006.
posted by Gripplly at
17:27
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