European ad budgets shift online
Up to 70% of European advertisers intend to increase online ad spend during 2009, as budgets continue to shift as a result of the recession.
The latest Ad Barometer from the European Interactive Advertising Association (EIAA) found budgets across the region were being reallocated from traditional media to online as the recession takes hold.
According to EIAA research released today, despite the credit crunch, the internet is continuing to prove the medium of choice for more advertisers as they seek to maximise return on investment. 70% of advertisers claim that their allocated online ad spend is increasing in 2009 and with this growth in the digital sector continuing (+21% in 2010 and +15% in 2011), it’s a medium set to be a rising star for years to come.
The EIAA Marketers’ Internet Ad Barometer, was commissioned by the EIAA to provide the most up to date insight into how advertisers plan to change their strategies in 2009 and beyond. The research explores economic and commercial issues for marketers today and how they will evolve their use of interactive media to target their audiences. The results reveal that online is playing an increasingly important role in overall advertising strategies with 47% of advertisers now regarding online as an essential factor within the marketing mix (vs. 38% in 2008 and 17% in 2006).
Budgets move from Traditional Media
Marketers continue to reallocate budget from traditional media to online, demonstrating the continued investment by marketers in the digital sector. The research indicates that the increase in online ad spend is coming directly from TV (37%* of advertisers claim the increase in online ad spend has come from TV), newspapers (32%*) and increasingly, magazines (46%*). This growth in digital demonstrates not only the accountability of the medium but also to the increasing value and time consumers are spending online (+28%† growth in weekly internet use in 2008 compared with 2004).
Interestingly, DM** and radio budgets have seen the biggest decrease in revenue reallocated to online spend, with only 24%* and 12%* of advertisers claiming the increase in online ad spend has come directly from these media (vs. 32% and 20% in 2008). This points to a possible focus shift towards media that attributes itself to performance-led targeting as advertisers look to maximise their ROI, reach and cost efficiencies. Further to this, 72% of advertisers cite an increase in targeting according to demographic breaks usually associated with traditional media. With over half actively targeting the 25 to 44 age group (28% 25-34, 29% 35-44) it seems that advertisers are matching their targeting capabilities with the demographics that are using online frequently (average of 13.9 hours† spent online each week for 25-34 year olds and 11 hours† amongst 35-44 year olds).