May 3, 2005 9:10 AM PDT

Online advertising on upswing

Spending on online advertising is projected to reach $14.7 billion in 2005, as more marketers lose confidence in the effectiveness of traditional ads, according to new research.

That growth represents a 23 percent increase from 2004, according to a study released Tuesday by Forrester Research. Nearly all of the marketers surveyed said they plan to cut spending in traditional channels such as print and direct mail to fund increases in online ads.

Nearly 78 percent of those surveyed said they think search engine marketing will be more effective than traditional ads within the next three years; 53 percent said TV advertising will become less effective. The survey covered 99 marketers.

The growing interest in online advertising is not restricted to search engine marketing or display ads. About 64 percent of respondents showed interest in advertising on blogs, 57 percent through RSS (Really Simple Syndication), and 52 percent over mobile devices, Forrester said.

"Despite significant changes in consumer behavior, there is a large disparity between the amount of time consumers are spending online and the money marketers are spending trying to reach them online," Charlene Li, principal analyst at Forrester, said in a statement. "When at-work Internet use is taken into consideration, online consumers spend more than one-third of their time online--roughly the same amount of time they spend watching TV. Yet marketers spend only 4 percent of ad budgets online versus 25 percent on TV."

Online marketing and advertising will grow to 8 percent of total advertising spending in 2010, the researcher said. Search engine marketing will be worth $11.6 billion, while display advertising will touch $8 billion by that year.

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NOTHING SAID THAT HAS NOT BEEN DONE was in the headline, so I guess the following is worth reading!

I have written many responses for this publication and I must agree that advertising is on an upswing.

However the money being spend on advertising can be argued rather it is spend wisely or simply wasted.
Let me ask you this; if you have an email account with some of the so called free email client providers, when was the last time you clicked on one of the ads you saw next to your email? just asking... I don't know of anyone. Is this effective advertising? I guess some would say yes but I think for the most part that many would answer no that is not good or smart advertising.

So what is good and smart advertising?
Let's start with Branding. Is it smart advertising if you could get your name right next to peoples email while they were reading? not necessary, rember I said while they were reading witch means that they would be occupied reading something else and only a very slim chance that they would even see the advertisement.
How about banner ads! let me ask you this, when was the last time you clicked on a banner?....... that's right, that was your answer.
So back to the question: does online advertising work? my answer is with a huge type ABSOLUTELY if it is done right.
What is right you may ask;
Give something of value away for FREE and the customers will come.
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What does advertisers want? How about a captive audience that are not being distracted by reading emails, typing an email or simply just doodling away.
How about having your name or logo inserted onto the AdCalls Communicator and every time someone that has downloaded your AC they would see your name first prior to SEARCH, talking on the VoIP, looking for coupons or how about watching FREE MOVIES, that's right I almost forgot, how about watching FREE movies. Do you think that your customers would wanna watch FREE MOVIES.
Every time one of your customers or friends were to use this freely available communication tool directly from your website "get ours here" <a class="jive-link-external" href="" target="_newWindow"></a> your name would be there. On the Icon itself sitting on their desktop, every time they were going to use it and throughout their use of the AdCalls Communicator.

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