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/// Posted by Alexandre Brabant on Wednesday, August 08, 2007
Internet Ad Spending Set To Overtake All Media By 2011
I was browsing around the Search Marketing news today and I found this: SPENDING ON INTERNET ADVERTISING WILL reach $61.98 billion, and will surpass newspapers to become the nation’s leading ad medium in 2011, projects private equity firm Veronis Suhler Stevenson in its 21st Communications Industry Forecast released today.
“We are in the midst of a major shift in the media landscape that is being fueled by changes in technology, end-user behaviors and the response by brand marketers and communications companies,” says James Rutherford, executive vice president and managing director at VSS.
According to the study, Search Advertising based on keywords (PPC or Pay per Click) will be the main driver of this shift and will maintain its first position in Internet Advertising spending in 2011. Please note the gap in this research between Paid Search and Banner Advertising. Whereas, it is more or less 50-50 today, the proportion towards Paid Search Advertising will outgrow banner ads in the next few years. Check it out:
If you are not yet engaged in a Paid Search Advertising program (PPC), now is a good time to start. Tomorrow, it will only cost you more. PPC average click cost has been rising at a steady 10-25% year over year, which erodes your profit margins over time.
Read the full press release here.
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