• by Jack Loechner , Staff Writer @mp_research, October 21, 2001

According to a survey from the Association of National Advertisers, major companies are unlikely to increase their Web marketing spending this year.

The industry association said its fifth annual Internet advertising study found that more advertisers turned to the Web for branding goals, with more than half of the respondents saying they used online advertising for developing or improving brand loyalty -- 10 percent more than the previous year.

"As the use of Web sites, extranets and intranets matures, we see increased emphasis on them as brand building and communications tools," said ANA senior vice president Barbara Bacci Mirque. But she went on to say that despite reassuring findings, the study also produced several discouraging conclusions.

For one thing, online advertising still accounted for only about 2.8% of national advertisers' total spending -- about what it did in 1999. As a result, increases in Internet ad spending closely reflect increases in overall ad spending, suggesting that Web advertising did not capture a larger piece of the pie.

And, only 41% of respondents said they expect to see an increase in Internet ad spending during 2001, whereas almost all had forecast an increase for 2000. Additionally, the study took place in April and June, and thus doesn't take into account the Sept. 11 terrorist attacks and related events -- events that many believe have and will continue to negatively impact the industry.

Among advertising types, 92% of ANA respondents said they favored the standard banner and button, with 75% also using search engine marketing, down 9%. 70% tried sponsorships, down 11%. E-mail, however, saw some growth, with 66% of respondents saying they use the medium for marketing.

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