Online ad spending:
GROWTH IN NEW CHANNELS, BUT SEARCH STILL ESSENTIAL
While SEM may have been the king of the realm a year ago or even just a few months ago, that may not be the case going forward. Advertisers are discovering the potential of a wider range of new innovative online marketing formats and channels.
SEM certainly isn’t going away anytime soon, so it’s essential that you manage search and these other channels in a way that delivers optimal results. Taking a look at some data published by the Internet Advertising Bureau, we can compare spending in the first half of 2011 compared to the same period last year.
Search still accounts for nearly 50% of Internet advertising revenues, with Google remaining the 800-pound gorilla in the room for that channel. And in percentage terms, there doesn’t seem to be much change in spending. But when you look at overall spending, you can see that the entire category is growing.
What remains constant about the industry is change. We’re seeing brand new formats as publishers and networks continue to make new options available – such as the IAB rising stars – to help advertisers use the latest innovative techniques to engage with consumers and showcase their brands and products.
And let’s not forget about social media. That’s expected to be a , which is expected to $5.5 billion market by the end of the year with get this – growth rates of 20 to 40% per year over the next few years. It’s so popular that even the Dali Lama is getting involved.
Although it’s interesting to review where advertisers are spending their budgets online, it’s not necessarily the way you should allocate your budget. The major challenge, and what’s shaping up to be the biggest battle ground of all is performance, a subject I’ll explore in my next post.