Advertisers and marketers are lacking confidence in measuring their web marketing according to a new study by WebTrends, with only 5% of those surveyed claiming they were “very confident” in the measured effects of their web marketing.
WebTrends’ study, shows that a massive 39% have “no idea” what method their website is currently using to identify unique visitors, while just 20% have a comprehensive set of metrics to measure campaign performance.
WebTrends states that there are several reasons for this uncertainty, citing the use and misuse of cookies as the main problem.
Greg Drew, WebTrends’ chief executive officer and president explained, saying: “Together, the growth in third-party cookie rejection and the confidence gap in using measurement to optimise web marketing efforts, will drive business professionals to more deeply understand their metrics, which is a great thing in the long run.”
Drew added: “By moving beyond simple reports and flashy visuals, business professionals will focus on what matters most, the ability to easily make the right decisions in order to improve their results.”
Despite the clear lack of knowledge revealed by advertisers using the internet as a medium to reach their audience, online advertising is performing strongly, with the latest report from the IAB showing online adspend to total over $2.8 billion for the first quarter of 2005 (see US Online Adspend Hits $2.8 Billion In Q1 2005).
Recent figures released by TNS Media Intelligence confirm strong growth in online advertising in the first three months of 2005, showing online adspend to be up by 8.2% year on year (see US Adspend Up By 4.4% In Q1 2005).
Online ad expenditure was shown to be up by 8.2% year on year in the quarter, confirming predictions for a strong performance in the online sector for 2005.
This strong start to 2005 confirms financial services company Goldman Sachs, prediction that 2005 will be a bullish year for online advertising, with the market forecast to increase by 28% year on year, reaching $12.3 billion (see Goldman Sachs Predicts Online Adspend To Rise By 28% In 2005).
Elsewhere, estimates released last month by Forrester Research are more optimistic than Goldman Sachs, predicting that online adspend will reach $14.7 billion this year, a 23% increase on estimates for 2004 (see US Online Ad and Marketing Spend To Reach $14.7 Billion in 2005).
Meanwhile, ABC Electronic (ABCE) has underlined the value of its verified traffic figures, with a study amongst media buyers highlighting the need for “comparable and independent” traffic figures in the buying process (see ABCE Research Shows Value Of Online Audience Measurement).
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