Buyers Still Purchase Online Ads At Last Minute

While the growth of broadband and availability of streaming video has made it possible to view the Internet as akin to television--even to the extent of running repurposed TV ads--at least one important distinction persists: The overwhelming majority of online advertising buys are made shortly before the campaigns run, according to recent research conducted by MediaPost in conjunction with Deutsche Bank. (See "Online Ad Spending Up In First Quarter," OMD, April 6).

Nearly three out of four--70 percent--of the 108 media buyers and planners surveyed reported that they commit to inventory purchases only three months or less in advance. "The commitment, relative to TV, is still considered spot," said Jeetil Patel, a Deutsche Bank senior analyst.

Overall, 50 percent of the respondents reported purchasing online media less than two months in advance of a campaign, while 20 percent purchased Internet inventory two to three months prior to the campaign. An additional 22 percent reported making online buys three to six months in advance, and 7 percent said they bought Web media more than six months in the future.

One reason for the short lead times, proposed Deutsche Bank, is that publishers are reluctant to sell inventory in advance if there's a chance that ad prices will rise in the future.

The duration of online campaigns remained flat from the fourth quarter of last year through the first three months of this year, according to the survey. Sixty percent of respondents said their clients' campaigns were of the same [duration]. Twenty-six percent reported that campaigns ran for longer, while 14 percent reported shorter terms.

The survey was conducted online by InsightExpress, using members of the MediaPost advisory panel.

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