Even though the overall economy in the U.S. is weak, the online advertising industry remains strong. American companies are continuing to invest in their online advertising campaigns. According to the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), for the first 6 months of 2011, U.S. online advertising spending reached $14.9 billion. Yes, you read that correctly. $14.9 billion for just 6 months.
You will notice that businesses are shifting their online advertising dollars away from email marketing campaigns, hence, the 34.2% change from 2010 to 2011.
It is safe to assume that most key industries (think retail, auto, etc.) are causing the rising growth in online advertising, but can you guess which particular industries are the big spenders? Take a look at the chart below.
From this chart, you can see that the consumer packaged goods (CPG) and healthcare industries have lowered their online advertising budgets for this year. Why the decrease? You have to consider these industries’ current statuses. The FDA has yet to provide their social media guidelines for the healthcare industry, which is resulting in hesitation for these key players to take action online. It also seems as though the CPG industry is hesitant because of their past history in television advertising. I am sure it will be a matter of time before both industries change their perspectives on online advertising.
Did you think the online advertising industry was still growing steadily despite the poor economy? How has your online advertising budget changed this year? And how will it change next year?
About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore. His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies. He manages over $1.2 million in yearly marketing budgets and has worked with local businesses, agencies and the US government. Give him a call at (877)655-3438 to schedule a free consultation.
Check out eMarketer for further insight at http://www.emarketer.com/Article.aspx?R=1008619