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.
