Increase online advertising budgets – Boost it or loose it!
This is the perfect time for a new year’s resolution, and I’d like to suggest to all marketers that they increase their online advertising budget in 2007. We’ve seen astronomical growth in online advertising in 2006; according to the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP, “internet advertising revenues reached an estimated new record of $4.2 billion for the third quarter of 2006. The 2006 third quarter revenues represent a 33 percent increase over $3.1 billion in Q3 2005″. This shows how marketers have embraced the power of online advertising and how they have trusted the medium.
But, why are most marketers still not spending a fair percentage of their budget online? These are the two most common reasons:
- search doesn’t bring us new customers; all of our orders come from searches on our brand name
- we have a strong an organic presence on many keywords; it’s a waste of money to pay for traffic when we get it for free
These are all valid points, but the internet has dramatically changed consumers purchase behavior and online advertising is trying to tap into that. So far, we have learned that:
- people are increasingly moving to the internet to search for product/service
- people don’t search for products/services they don’t know exist
- people use search to answer their “questions”
The above information tells us that online advertising is bridging the cap between the consumer awareness of a product/service and consumer interest and action – online advertising has become consumers’ concierge or “product location” service. Can’t you just imagine somebody searching for a pocket digital camera she just saw on TV or heard from a friend? When they do that search, you want to be there in front of them.
So, there you go marketers… think of paid search advertising as a way to facilitate your consumers’ purchase process while ripping the benefits of increased awareness and ROI. If I still didn’t convince you, you might as well go ahead and just do it because your competitors are doing it and you’ll be left behind.
Source: “Budgeting for Search Success.” Multichannel Merchant, 12/06.