Marketing spending on the Internet will surpass the amount for US TV and radio advertising this year for the first time, a report by consulting firm Outsell Inc says.
Firms will spend about US$105.3 billion on the Internet, or 26 percent of marketing spending, Burlingame, California-based Outsell said yesterday, citing a survey of 1,088 executives. That tops the 24 percent paid for TV, radio and theater ads.
Almost two-thirds, or US$65 billion, of companies’ spending on Internet marketing goes to building and maintaining their own Web pages, Outsell said.
The firm includes that data in its results because it gives a more accurate picture of the Internet’s impact, lead analyst Chuck Richard said.
“That number has risen dramatically,” Richard said. “It’s important to track because it siphons money away that would have gone to media companies.”
More than 30 percent of ad dollars that leave print media will be spent on companies’ own Web sites, where they do everything from hunt for workers to sell houses, Richard said.
Almost 18 percent of lost print spending will pay for promotional events such as trade shows, and as much as 19 percent will go to search-engine advertising.
Less than 8 percent is earmarked for Web sites owned by newspaper firms, the survey showed.
Online marketing spending will grow 13 percent this year, down from 18 percent last year and three times higher than growth in TV and radio spending, Outsell said.
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