Study: 80% of Advertisers are Online

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Outsell, Inc. just released the results to its survey of over 1,200 advertisers who control $2.4 billion in ad spending, entitled “Annual Ad Spending Study: Where and Why Advertisers are Moving Online.” Outsell claims the study to be of “unprecedented breadth and depth,” as it attempted to analyze differences across advertisers, track current trends and project upcoming trends regarding shifts from traditional media to online advertising, as well as take into account advertisers’ views about various online issues such as budget allocation, the use of Google vs. Yahoo! or Microsoft, and keyword ads vs. contextual and behavioral ads.

Foremost among the survey’s many surprising results, Outsell found that 80% of advertisers are now online to some extent, and that 90% are expected to be online by 2008. They also project total online marketing spending to grow by 19% in 2006, while search engine spending should grow by 26% by the year’s end.

There was a consensus among the respondents that the power of online marketing has had a major influence on smaller businesses to shift away from traditional forms of media, while the “old media” of trade magazines, events, and direct mail marketing are still rated the top three most effective tactics for both branding and lead generation advertising.

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