Internet ad spending expected to rise by 18 percent in 2007

With the ever-growing presence of Web search engines and the impact they can make in online sales, closely examining and analyzing marketing trends is more critical today than at any other time.

Internet ad spending expected to rise by 18 percent in 2007

January 31, 2007

Advertisers who control about $6.5 billion in spending projects were part of a recent survey that reveals the print and broadcast shares of U.S. ad budgets will continue to decline this year, while Internet advertising will continue to increase.

The "Annual Ad Spending Study 2007" from Outsell, suggests that U.S. companies plan to boost their Internet ad spending by 18 percent in 2007, more than for any other major media type.

Looking at the numbers a little closer shows that Internet marketers plan to raise search engine advertising by 39 percent, the greatest increase of any online media method.

However, Outsell's survey also uncovered some troubling news for online ad sellers. The PPC (pay-per-click) share of Internet ad spending is expected to fall slightly this year, by approximately 1 percent, but that is only an indication of a deeper problem.

As a whole, click fraud worries are the driver in the overall PPC drop in advertising share.

The survey indicates that about 49 percent of Internet advertisers have reduced or plan to reduce their PPC spending because of click fraud, up from 37 percent in the spring of last year.

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Source: eMarketer