US ad spend continues to decrease, according to a report released by TNS Media Intelligence--total advertising expenditures have declined for two consecutive quarters. However, online ad spend has increased significantly to $5.5 million—up 17.7% over the first half of 2006.
While this report only takes into account online display ad spend, eMarkerter is estimating total online ad spend—including display, video, paid search, email sponsorship and referrals—will reach $21.7 billion by the end of the year. They also estimate by 2008, for the first time, online ad spend will overtake radio spend.
Consumers are spending more time online. As such, marketers must re-examine the ideal ways of reaching their audiences. Traditional online advertising such as banner ads and pre-roll utilized in a Web 2.0 environment may not be the answer.
The consumer has evolved; the Internet has give consumers the ability to engaged on multiple levels—blogs, social networks and other online communities. In order to achieve the ideal ROI and remain top of mind with their customers, marketers must begin engaging with their audience on their level.