Monday, October 13, 2008

Robust growth in interactive ad spend and ROI

You can look at many different research papers, study' and metrics and can see from most if not all of them that traditional advertising is declining, and interactive is on the march - and steadily growing. As we move to a more wireless and digital world, one where we are on the go and receive our media through as many digital platforms as possible, the media buying and ROI will increase in areas that are showing the largest growth, in this case mobile/interactive/on-line/out-of-home.

With many metrics showing that the ROI is also much better, the following stats below will provide a better outlook on specefic areas of growth and information to back it up:

  • 45% of 2007 interactive ad spending counted as display
  • Paid search advertising accounts for 38% and is expected to grow.
  • Google commanded a median 86% share of 2007 search inquiries in the survey’s sample of 35 countries, somewhat ahead of other industry samples.
  • The mean online shopping spend per user in 2007 was estimated at $471, and the only country to break the $1,000 mark was Denmark.
  • There is also strong positive correlation between the amount of broadband a country has and the internet’s share of advertising investment.
  • Demographics alone will sustain growth in internet use among consumers for at least another generation, and possibly two, as those under 25 years old carry their habits into middle age and beyond.

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