If forecasts made by various media communications companies are to be believed, the amount of money spent on internet advertising is poised to increase considerably.
This news comes in spite of the fact that the total amount of money being spent on advertising across the various forms of media, such as print, television and radio is expected to go down.
Media communications company, Carat, has estimated that the budgets allocated to online advertising will go up, by 23.7% in this fiscal year, and 18.6% next year. In other words, the Internet will account for 8.6% of the total revenue allocated to advertising this year, and 9.8% next year.
An important cause for this could be the change in loyalty of consumers, from the older forms of media to Internet and mobile. However, it is more likely that the increased level of accountability offered by search marketing makes it more attractive than other media formats, especially during times of economic uncertainty.
Another report released by StrategyEye Digital Media also indicates that in spite of the general down-sizing in advertising, Internet and social media advertising will continue to remain strong.
StrategyEye surveyed over 200 decisionmakers in dominant companies across the digital media sector. The survey found that 60% and 56% of respondents are likely to invest more in social media and mobile respectively. 87% of those surveyed felt that online advertising gave better results than other form of advertising.
While almost 62% of advertisers using traditional media plan to cut down these budgets, 52% of advertisers using online plan to increase their budgets and only 13% of them will reduce online ad budgets.
Most advertisers are of the opinion that online advertising presents a great opportunity. Many companies plan to spend more on digital media at the expense of traditional media. Mobile advertising is doing very well presently, and is expected to continue doing so. Online TV is also believed to be a great opportunity in the future.
The most surprising result of the survey, though, was the general opinion that investing in social media is perceived to be a good move, in spite of the relative reluctance shown by most brands to invest in the space.
Having a well balanced mix of online advertising, mobile advertising, online TV and social media might be the most effective strategy for 2009.