Over 50% of companies that currently advertise on the internet plan to increase their online ad budget over the next year, according to a new study published today by ISBA.
The study, conducted by research company Arc, shows that 70% of brands now advertise online and only 12% expect to see their investment in internet advertising decline over the next year.
The report’s author, Jonathon Lace of Southampton Business School, said: “Despite the burst of the internet bubble the situation amongst leading advertisers appears robust. Spending on website development e-commerce and internet advertising will continue.”
However, the report also discovered that almost half of advertisers believe that they are failing to successfully integrate their online and offline campaigns and that new media advertising should play a greater role in the cross-media mix.
The study also found that financial services, retail and tourism advertisers use the internet mainly to drive sales, whereas FMCG advertisers use the internet to enhance brand image and improve awareness.
