Internet publishers predict traditional advertisers, such as pharmaceutical, automotive, travel and entertainment industries, will increase their online advertising expenditure by 20% in 2005, according to research company Advertising.com’s second annual survey of online publishers.
Advertising.com has forecast that traditional advertisers will increase their online adspend in 2005 by a massive 70%, concentrating their online dollars on rich media, streaming content and behavioural targeting.
A recent report by US market analysts eMarketer, also predicts that rich media advertising will enjoy substantial growth in adspend during 2005 (see Rich Media Advertising Set For A Strong 2005)
Commenting on the findings, Scott Ferber, chief executive officer of Advertising.com said: “Our publishers report that traditional advertisers are beginning to perceive online advertising as more ‘mainstream’. These predictions are consistent with our own experience working with advertisers.”
He continued: “Both web-based and traditional advertisers are becoming more comfortable using the web for direct-response as well as branding campaigns. And newer, more sophisticated targeting strategies and technologies are enabling them to measure and optimise the effectiveness of those campaigns better than before.”
The study identified that key revenue generators for 2005 will include text links, large rectangles and small banners. These expectations for revenue by creative format, varied considerably from predictions in 2004, with forecast revenue growth for banners more than doubled year on year.
Recent research published by Internet research group, Nielsen//NetRatings stated that the number of banner adverts run on European websites had increased by 24% year on year in November, thus confirming the predicted increase in popularity (see Europe Sees Internet Banner Ad Surge).
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