Eight out of ten advertisers buy online media, according to new research from California-based Outsell. The research firm polled 1,200 advertisers with a collective budget of $2.4 billion and said that number should rise to 90 percent by 2008. Outsell also predicted that online spending will increase 19 percent this year--eight times the pace of TV and radio. Other firms have forecasted online spending increases this year between 20-25 percent. Advertisers simply can no longer deny the broad reach and incredible tracking capabilities of the Internet, Outsell's CEO told Media Life. Not only that, but for smaller advertisers--those with budgets under $1 million--a pay for performance program like Google's AdWords is an ideal way to reach consumers specifically looking for the products and services sold by small businesses. Despite having said that, Outsell's sample actually rated e-mail as the best online channel, followed by search. The research company also forecasts that blog advertising will grow 43 percent this year, partly because there are so many blogs with sizable, steady traffic and lots of unclaimed inventory.
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