Up Up And Away

Ad Age: Nearly half of the chief marketing officers at Fortune 500 companies said they plan to increase their online advertising budgets by 30% this year.
The growth in projected spending is a result of online being viewed as a preferable ad channel because it is accountable.
“The average consumer spends about 30% of their media time online — that’s why you’re seeing all that catch-up spending,” said Heath P. Terry, CFA, research analyst, at Credit Suisse.
While major brands plan to increase their online spending, the entire ad market is still spending only 5% of budgets in online advertising. Credit Suisse projected that the overall percentage to increase to 6.5% in 2006.
“If their consumers are spending 30% of their media time online, and they are only spending 5% of their ad dollars online, advertisers need to be spending that many dollars online,” Mr. Terry said.

About David Burn

I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. Today—after working for seven agencies in five states—I am head of brand strategy and creative direction at Bonehook in Portland, Oregon.