A new article from eMarketer, Inc. titled "Internet Ad Spending Continues to Thrive" (based on research from TNS Media shows Internet display ads grew by 13% during 2005 (and this does not include pay-per-click advertising). During this same period, ad spending in B2B magazines (e.g., HR trade magazines) grew by only 2.4%. And while spending on traditional media (e.g., local newspapers, network TV) continues to lead, online advertising spending far outweighs spending on national newspapers and network radio.
The fact is, Internet advertising is the only medium showing any real growth and the eMarketer chart on this post predicts continued growth in all areas of online ad spending.
HRmarketer's Trend Reports validate this trend within the human capital marketplace whereby online marketing activities are supplementing and/or replacing more traditional marketing activities.
We believe the three major factors driving this trend are:
- It's Affordable (relatively speaking). We placed a banner ad in a popular HR eNewsletter for one of our clients. The ad cost about $1,500 and reached over 100,000 subscribers. In a major industry trade magazine, a tiny 1/8th page ad will cost you three times as much.
- It Effective: Advertising goes where the people are, not vice versa. Today, many people spend more time online than reading print publications or watching TV. And, online advertising makes it easy for people to respond (a simple click) and is easily tied to a lead generation campaign (e.g., download our free whitepaper).
- It's Measurable: Unlike print or TV advertising, online advertising is easily measured. The client we placed the banner ad for knew exactly how many people responded to the ad and could easily track the campaign's effectiveness. In fact, the client ended up closing a $30,000 deal as a direct result of the ad.
Do we suggest shifting all your print ad dollars to online? No. Print advertising can be an important component to many companies marketing strategy (we do it ourselves). What we do suggest is taking a fresh look at how you allocate your marketing dollars. As a percentage of your overall budget, have you been increasing the amount you spend on online advertising, direct email, SEO, Marketing PR, etc. relative to other activities?