Advertisers Prefer Their Own Web Sites, Followed By Email And Search
The research firm surveyed more than 1,000 advertisers and found that email and search marketing came in second and third for effectiveness, although almost half (49%) of the companies viewed click-fraud as "a serious issue" and "planned to reduce, or had already reduced" spending on pay-per-click ads. Still, Outsell found that advertisers' search budgets are slated to increase by 40% overall this year, although "small, medium, and large companies exhibit major differences in where they allocate their budgets and what strategies they find most effective," said Leigh Watson Healy, chief analyst, Outsell.
For example, 58% of small firms (less than 100 employees) ranked Google's keyword search as effective, versus 32% for Yahoo. The trend continued with medium businesses (100-1000 employees), as 75% rated Google effective, and just under half for Yahoo. Large companies (1000+ employees), however, had the two neck and neck, with Google found effective by 63% and Yahoo by 63%.
The survey was conducted before Yahoo migrated U.S. advertisers to the Panama platform, a factor that Outsell acknowledged could have skewed the effectiveness rates. "For the next survey, we'll definitely be paying attention to any pre- and post-Panama differences," said Chuck Richard, vice president and lead analyst, Outsell. "The feedback we've been receiving from advertisers has been positive with regards to its effect on keyword search effectiveness."
The study found that medium-sized advertisers represent the greatest opportunity for online publishers--as they are forecast to spend 63% more on online advertising this year, compared to 14% and 19% for small and large businesses, respectively.
Overall, Outsell found that U.S. advertisers are slated to allocate almost 22% of their marketing budgets to online media this year, to spending nearly 18% more than in 2006.