Investment In Online Advertising Set To Grow

Over 50% of companies that currently advertise on the internet plan to increase their online advertising budget over the next year, according to a new study published today by ISBA.

The study, carried out 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.”

The report also found that almost 50% of brands believe that they are failing to successfully integrate their online and offline campaigns and feel that new media advertising should play a greater role in the cross-media mix.

ISBA’s director of membership services, Debbie Morrison, said: “The report highlights that success in new media depends on there being a clear strategy and vision for new media at the highest levels of management. The greater the investment and the stronger the commitment to accountability – in developing strategy and carrying new media communications forward – the greater the success.”

The research 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.

Morrison added: “This report provides valuable benchmarking data to assess new media activities, investment levels and strategies against market norms.”

ISBA: 020 7499 7502 www.isba.org.uk

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