Traditional advertisers to increase online spending by 20% in 2005
Advertising.com, Inc. has released findings from its second annual survey of online publishers. The study surveyed publishers about their advertising business expectations for 2005. Results reveal an overall positive outlook, with expected growth in spending on emerging advertising technologies and by traditional advertisers such as those in the pharmaceutical, automotive, travel and entertainment industries.
Key revenue growth areas for 2005 include text links, large rectangles and small banners. Additionally, publishers identified rich media, streaming content and behavioral targeting as advertising channels that will have the greatest impact on their 2005 ad revenue.
Traditional advertisers are expected to increase their online advertising spending in 2005, concentrating their online ad dollars on rich media, streaming content, contextual advertising and large rectangles. However, revenue to online publishers is still expected to come predominantly from web-based advertisers working to achieve direct-response objectives. Publishers working more with web-based advertisers expect search and text links to contribute the most to their 2005 revenue growth.
Seventy percent of the surveyed publishers support rich media ad formats, and publishers expect rich media ads to have the greatest impact on their 2005 revenue. Streaming media was also mentioned frequently as having the potential to positively impact ad revenue in 2005.
Although web-based advertisers continue to generate the greatest share of online advertising dollars, publishers predict a 20 percent increase in traditional advertisers' online spending compared with 2004.
"Our publishers report that traditional advertisers are beginning to perceive online advertising as more 'mainstream,'" says Scott Ferber, chief executive officer of Advertising.com. "These predictions are consistent with our own experience working with advertisers. Both web-based and traditional advertisers are becoming more comfortable using the web for direct-response as well as branding campaigns. And newer, more sophisticated targeting strategies and technologies are enabling them to measure and optimize the effectiveness of those campaigns better than ever before."
Publisher expectations for revenue by creative format varied considerably from reported expectations in 2004. Key revenue growth areas for 2005 include text links, large rectangles and small banners. In fact, predicted revenue growth for banners more than doubled compared with the 2004 survey.
Key revenue growth areas for 2005 include text links, large rectangles and small banners. Additionally, publishers identified rich media, streaming content and behavioral targeting as advertising channels that will have the greatest impact on their 2005 ad revenue.
Traditional advertisers are expected to increase their online advertising spending in 2005, concentrating their online ad dollars on rich media, streaming content, contextual advertising and large rectangles. However, revenue to online publishers is still expected to come predominantly from web-based advertisers working to achieve direct-response objectives. Publishers working more with web-based advertisers expect search and text links to contribute the most to their 2005 revenue growth.
Seventy percent of the surveyed publishers support rich media ad formats, and publishers expect rich media ads to have the greatest impact on their 2005 revenue. Streaming media was also mentioned frequently as having the potential to positively impact ad revenue in 2005.
Although web-based advertisers continue to generate the greatest share of online advertising dollars, publishers predict a 20 percent increase in traditional advertisers' online spending compared with 2004.
"Our publishers report that traditional advertisers are beginning to perceive online advertising as more 'mainstream,'" says Scott Ferber, chief executive officer of Advertising.com. "These predictions are consistent with our own experience working with advertisers. Both web-based and traditional advertisers are becoming more comfortable using the web for direct-response as well as branding campaigns. And newer, more sophisticated targeting strategies and technologies are enabling them to measure and optimize the effectiveness of those campaigns better than ever before."
Publisher expectations for revenue by creative format varied considerably from reported expectations in 2004. Key revenue growth areas for 2005 include text links, large rectangles and small banners. In fact, predicted revenue growth for banners more than doubled compared with the 2004 survey.
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