Friday, September 11, 2009
Yet another indication of how industries can be transformed by technology comes from the US where the Kelsey Group reports there are now more small and medium businesses in the US advertising online than in traditional media.
Specifically 77% of US businesses use online advertising in August 2009 compared to 69% using traditional media. Last year the figures were about even.
However, the spending profile is different. Business is still putting more of their budget towards traditional media (nearly two thirds) although during the last year the share of online has increased from 22% to 37%.
That is a significant growth in an environment when overall advertising spending is down. ie while business cut back advertising they invested more in online. Perhaps this was largely driven by better proof points around return on investment or alternatively the relatively small amount of money needed to reach a wider audience.
In Australia these figures are likely to be much lower although the same trend over time is likely to apply. Business already spends $1.8bn advertising online.