Most leading ad executives in the US expect a significant proportion of broadcast and cable TV ad dollars to shift to online video by 2010, with 33% predicting that switch will be between 10% and 19%, according to new research from the American Advertising Federation (AAF).
In addition, 2007 budgets for online advertising are expected to rise by an average of 42% over 2006.
The AAF research shows that amongst ad executives broadcast TV is seen as offering the “most innovative” integration with online media, whilst magazines are seen as “most effective” for driving consumers online.
The AAF Survey of Industry Leaders on Advertising Industry and New Media Trends reveals that industry leaders utilise a range of online ad targeting, but over half find behavioural targeting to be the “most effective” methodology.
Search was deemed the “most effective” new media option, and, says the AAF, is expected to take the greatest share of the 2007 media budget.
Industry leaders feel strongly (71%) that the online medium is “very effective” or “most effective” for direct response advertising, but note that there is difficulty reaching key demographics, particularly older audiences, online.
The AAF survey compiled the responses of 168 industry leaders who represent all sectors of the industry, with over 58% having worked in advertising for more than 16 years.
Recent research from the European Interactive Advertising Association showed that online advertising is increasingly attracting big spenders, with advertisers forecasting that online will represent a growing share of their overall media budgets over the next two years, especially within the FMCG and Entertainment sectors (see Online Becoming Increasingly Important To Advertisers).
Meanwhile, JupiterResearch forecast that media and entertainment, financial services, travel and automotive advertisers in the US will spend $11.5 billion advertising online in 2011 (see Top US Online Advertising Categories For 2011).
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