As many advertisers were forced to cut back last year, so media owners probably comforted themselves with the thought that no part of the industry was immune to the effects of the UK’s deepest recession since the 30s.
However, the latest research shows that digital media have, to some degree, managed to ride the storm. According to Nielsen, overall internet adspend rose from £461.4bn in 2008 to £506.3bn in 2009 – a 9.7% year-on-year increase. While half of the UK’s top 100 online advertisers cut their media spend in 2009, more than 80% of them increased their internet investment; many of them attracted by the prospect of solid ROI at a time when they were striving to cut marketing costs.
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Regardless of the effects of the recession, there appears to be a growing belief among brands that increasing adspend does not guarantee marketing success. By its own reckoning, Moneysupermarket.com, the 10th-placed online advertiser in the list, spent 22% less on its marketing last year, including search, but was still able to attract 14% more customers.
‘For us, it has become less about how much you spend and more about what you say and how you say it,’ says Ian Williams, the brand’s director of communications.
In a handful of sectors there was a sharp reduction in internet adspend. While they continue to make extensive use of the channel, media/entertainment brands collectively cut their budgets for online marketing by almost 16%.
Other sectors where big falls occurred include retail, which spent 42.3% less, and the property and pharmaceutical sectors, which made reductions of 45.5% and 55.2% respectively. However, while property and pharmaceuticals cut their marketing across the board last year, retailers raised their budgets overall; this suggests that online price deflation has enabled advertisers in this sector to make significant savings.
Adam Woods | //brandrepublic.com
While the recession cut a swathe through above-the-line media channels, digital marketing grasped the opportunity to prove itself, writes Adam Woods.
O2 top digital advertiser increased internet marketing expenditure by 22.8% year on year
As many advertisers were forced to cut back last year, so media owners probably comforted themselves with the thought that no part of the industry was immune to the effects of the UK’s deepest recession since the 30s.
However, the latest research shows that digital media have, to some degree, managed to ride the storm. According to Nielsen, overall internet adspend rose from £461.4bn in 2008 to £506.3bn in 2009 – a 9.7% year-on-year increase. While half of the UK’s top 100 online advertisers cut their media spend in 2009, more than 80% of them increased their internet investment; many of them attracted by the prospect of solid ROI at a time when they were striving to cut marketing costs.
See Table (Ranking)
(…)
More for less
Regardless of the effects of the recession, there appears to be a growing belief among brands that increasing adspend does not guarantee marketing success. By its own reckoning, Moneysupermarket.com, the 10th-placed online advertiser in the list, spent 22% less on its marketing last year, including search, but was still able to attract 14% more customers.
‘For us, it has become less about how much you spend and more about what you say and how you say it,’ says Ian Williams, the brand’s director of communications.
In a handful of sectors there was a sharp reduction in internet adspend. While they continue to make extensive use of the channel, media/entertainment brands collectively cut their budgets for online marketing by almost 16%.
Other sectors where big falls occurred include retail, which spent 42.3% less, and the property and pharmaceutical sectors, which made reductions of 45.5% and 55.2% respectively. However, while property and pharmaceuticals cut their marketing across the board last year, retailers raised their budgets overall; this suggests that online price deflation has enabled advertisers in this sector to make significant savings. Leer más “Biggest brands: Top 100 online advertisers 2010”
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