Outsell Inc. in its second annual report on ad spending has predicted that the US advertising sector is expected to grow at 5.8 percent rate in 2007. It has conducted a comprehensive national study of advertisers that control around $6.5 billion of spending in this sector. The released report also suggests that companies are planning to increase their online advertising expenditure by 18 percent in the current year.
Further it suggested that advertisers are also flamboyant about advertising on search engines. According to the report various companies are planning to expand their expenditure on this search engine based advertisement and this particular online advertising is likely to grow by 30 percent.
Following are few crucial findings of the study:
1. Print, while still the largest recipient of ad dollars (40 per cent), will continue to lose share as online’s share grows to 20 per cent. This is a major milestone for online advertising.
2. Advertisers’ share of online spending for pay-per-click (PPC) ads will fall one per cent in 2007, while cost-per-action ads’ share will grow eight per cent and online sponsorships’ share will rise 12 per cent.
3. Advertisers rate online advertising very effective for branding, contrary to common wisdom that online shines at leads but is weak for branding.
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