Faith in the online medium as an advertising vehicle is at an all time high and a significant number of companies are prepared to increase their spending on interactive campaigns, according to a new study from MSN and the Interactive Advertising Bureau.
The latest
Online Pulse study, which is based on a survey of 500 media planners and brand managers, found that 85% of respondents are using online now or have done within the past six months. That represented an 8% increase on the previous survey and the number of people who have never used the medium is down to 12%
Some 43% of those surveyed said creativity was a major attraction of online marketing, a marked increase from 24% in March. Moreover, 75% of those questioned were able to offer examples of outstanding online advertising, compared with just 34% six months ago.
“There has been some really good work in terms of creativity over the past six months with powerful branding campaigns and the use of streaming media formats in particular,” said Chris Ward, head of sales and business development at MSN UK. “We see so much more branding online these days and it is being driven by traditional advertisers. The market is starting to mature – which is great news for everyone.”
According to the latest IPA Bellwether report, a growing number of advertisers are willing to devote more than a tenth of their budgets to online (see INSIGHTanalysis: IPA Sees Reduced Pessimism Despite Continued Cuts). Clearly the trend is upwards and the MSN/IAB study found that 39% of people envisage an increase in online budgets within the next six months. Nine out of ten marketers see budgets either increasing or staying the same, which compares to one in five in March seeing expenditure as likely to fall.
Certain categories are seen as particularly likely to see growth in online adspend. Half of those surveyed believe that financial service companies could increase their expenditure in the next six months and the automotive and entertainment sectors are also open to interactive solutions.
Despite the changing attitudes to online advertising reflected in the report, there is still progress to be made before advertisers are fully convinced about the potential of the internet. Refining metrics, proving accountability and education are regarded as essential objectives to pursue.
