RealTime IT News

Survey: Online Share of Ad Budgets on the Rise

A new survey of advertisers indicates that while 66 percent of respondents are still spending more on traditional media, 19 percent currently have an even mix and 6 percent are spending more in online marketing than on traditional media.

Personal finance Web site Quicken.com informally surveyed companies currently advertising online during its Partner Summits held in New York and San Francisco earlier this month.

Companies in attendance represented several industries, including financial services, telecommunications and e-commerce.

As advertising revenues continue to grow, the survey showed companies are exploring more creative Web marketing tools. The majority of companies surveyed (84 percent) have employed non-banner advertising, with three out of five companies turning to e-mail.

Forty-one percent of respondents have employed rich media technology, while others have used micro-sites and digital video as advertising vehicles.

"While banner ads are still largely used in online marketing, Internet trends necessitate advertising that will engage consumers, said Jeff Cohen, advertising director for Quicken.com.

Thirty-five percent of the companies surveyed reported that the association of content with the advertiser is the main reason sponsorships have become so popular. The ability to build brand awareness was the second most cited reason for the popularity of sponsorships.

Two out of four companies felt that gaining new customers was the No. 1 benefit of sponsorships. Increasing revenue and the ability to leverage Web expertise tied for second.