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Online Advertising To Account For 15% Of Ad Spend

By Mike Sachoff

Marketers are spending more on online advertising, while spending less on ads in other types of media, such as newspapers, radio and magazines, according to a new report from eMarketer.

The Internet's share of total media ad spending is increasing by at least 1 percentage point every year. eMarketer forecasts that online share of ad dollars will continue to grow, increasing from nearly 10 percent in 2009 to just over 15 percent in 2013.

"The spending shifts predate the recession," says David Hallerman, eMarketer senior analyst and author of the new report, US Advertising Spending: The New Reality.

"But the current economy is reinforcing the new advertising models-and making them more permanent."

Hallerman says online marketing is a practical way for companies to spend their advertising budgets in a tough economy.

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"Marketers can more readily measure the results of Internet advertising than with most traditional media," he says.

"This produces more-efficient advertising and higher ROI, which in turn pushes traditional media to compete with lower pricing."

That puts more stress on traditional media's bottom line.

"At the same time, successful Internet advertising creates a new paradigm for marketing on other media," adds Mr. Hallerman. "Search is the prime example of the new model."

"Advertising that consumers welcome is the new reality. Combining effectiveness with efficiency for marketers."

About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

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