Online ad spend to rise by 30 per cent
14 January 2005
Internet marketers will increase online spending by as much as 30 per cent in 2005, according to new data.
Figures by Deutsche Bank in conjunction with MediaPost estimate that marketers will spend more in Q1 2005 than they did in Q4 2004.
The study found that almost one in three respondents (27 per cent) expected their clients to spend between 11 per cent and 30 per cent more in the first quarter of 2005 than in the last quarter of 2004.
The survey of 100 media planners and buyers also revealed that an additional 12 per cent of respondents expected their clients' first-quarter online budgets to rise by 30 per cent or more, while 41 per cent expected their clients to increase spending by 10 per cent more in the first quarter of 2005 than the last three months of last year.
"There's good momentum coming in to Q1," said Deutsche Bank senior analyst Jeetil Patel. "Marketers are actually budgeting interactive into their media mix."
Respondents allocated 41.8 per cent of their clients' online dollars to branded ads, 24.1 per cent to direct response, 15.3 per cent to paid search, 10.3 per cent to email, 4.9 per cent to affiliate marketing, and 3.6 per cent to other internet advertising.
The largest proportion of media buys, 34 per cent, went to targeted content sites such as iVillage, MarketWatch, and CNET and a quarter of the budget went to the three largest portals, Yahoo!, MSN, and AOL.
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