Internet advertising gaining ground on traditional media

The Internet is now the fastest growing media for advertising and sponsorship. And in the US first-half net spending hit $5.8 billion compared with $3 billion for the same period a year ago. As PricewaterhouseCoopers' partner David Silverman commented:

'The consistent growth in overall revenues shows marketers may be shifting more of their total advertising budgets online. This is a natural development as research shows that more consumers are spending a larger percentage of their media time online while the flow of advertising dollars follows.'

Anecdotal evidence from Middle East interactive agencies suggests a similar trend in this part of the world, albeit from a very low base. The dilemma for local media buyers is that there is no dominant Google or Yahoo of the Middle East.

On the other hand, there are an increasing number of specialist websites which provide very good targeted advertising opportunities to specific communities. Online advertising and sponsorship can also provide amazing effectiveness for marketing dollars.

Net rates a steal

For example, a one-year sponsorship of a targeted page on a leading website can cost not much more than the daily cost of a single-page advertisement in a local newspaper. Admittedly online rates are bound to rise as media buyers notice this anomaly but it does mean that at present Net sponsorship rates are an absolute steal.

Similarly Net advertising banner costs per thousand impressions compare very favorably with other media. Moreover, advertisements on the Internet can be fully tracked by advertisers unlike television, newspapers and magazines whose readership is often ill-defined.

In marketing and advertising the US generally leads the way forward, and the first-half figures tell an interesting story. For this must also be the most difficult and cynical group of buyers in the world, where results are all that counts.

It is not surprising then that interactive media agencies are a high growth area at the moment, both in the Middle East and the rest of the world. Indeed, having a good agency on board is the only solution for most companies as the specialist knowledge needed to operate effectively in the online world is in short supply and unlikely to exist in-house.

Once marketing departments make that leap of faith they are likely to be richly rewarded with a media that delivers more than it promises at very modest rates.