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"The Economist" promises online advertising growth in all respects

Analytical department of The Economist magazine presented the results of a joint study with Google undertaken in an attempt to determine the future of online and offline marketing. In the course of the work, experts from 200 large corporations were surveyed, with an annual turnover of 70 of which exceed $ 5 billion.

According to the study, 56% of surveyed companies spend on advertising 1-5% of annual income. The other 22% costs more significant, and make up 6-10% of income. Directly on online advertising, 51% of respondents spend 1-5% of the total marketing budget, 17% give 6-10% of the budget. And only 8% do not spend a penny on advertising on the Web, but two years ago their number was more impressive - then 43% of companies saved on the Internet.

In the next two years, the cost of network campaigns will increase by almost 88% of the polled corporations - this is the highest indicator among media carriers. They will invest more in direct-mail (39% of respondents), magazine advertising (34%) and sponsorship (53%).
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From the budget spent on advertising online, the most money (25%) is now spent on e-mail marketing. 15-13% of the funds invested in banner advertising, sponsorship and search engine optimization. 7% each give for search and rich-media advertising. After a couple of years, the largest percentage of funds on the Internet - about 16% - will be donated to sponsorship. Investments in banner advertising will decrease to 10%, and in search engine optimization will increase to 15%.

For most companies, the main motive for advertising on the Internet is brand development. In a comment to the research, analysts of The Economist noted that interactive tools that allow users to obtain information about products and services will eventually become brand assets themselves.

Explaining the results of The Economist, Patrick Keane, director of field marketing at Google, noted that many marketers are now purposefully adapting to the new media landscape, shaping budgets and teams so as to ensure their advantage in the digital world. According to him, Google realized that the number of people who do not feel the difference between the online world and the real world is constantly growing. The company received $ 6.14 billion in revenue last year, 98% of which came from advertising, and this forces us to pay attention to every thought coming from its marketing departments.

Source: https://habr.com/ru/post/4450/


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