How are companies looking to connect with potential customers? The experts at Clay Creative tell us it’s through online advertising. A recent report by eMarketer projects U.S. online advertising for 2010 will reach $25.8 billion, a year-over-year increase of 13.9%. David Hallerman, an eMarketer analyst says, “With multiple ways to go online and with more activities once they get there, people spend more time online. Simply put, marketers know that to reach their target audience, they need to advertise more online.” PricewaterhouseCoopers accumulated sales data which shows online advertising is growing at a faster rate than the United States’ economy. Even following the recent economic recession, online ad spending’s share of the GDP rose nearly 12% in 2010’s third quarter and numbers for the fourth quarter are expected to increase by another 15%. After considering these results, eMarketer analyst, Jared Jenks, observed, “In some ways, the recession has propelled online advertising by forcing marketers with limited budgets to make every dollar count.” Internationally, online ad spending is projected to reach a staggering $96.8 billion by the year 2014, with the Internet’s global media share increasing from 12% in 2009 to 17%.
Jessica Clay, owner and creative director for Clay Creative says, “Since savvy marketers know their audience is online, it makes sense that we’re seeing a greater portion of advertising dollars spent on internet media.” Clay Creative has seen their own clients allocating more of their budgets towards advertising spending and not just traditional online ads. The early days of text-only ads have evolved into online streaming videos and media-rich advertisement. There are many different advertising formats, such as banner ads, pop-up ads, pop-under ads and several acceptable ways to charge an advertiser. The hottest area of Internet usage for many people around the world is social networking sites, with Facebook leading the way. There are over 500 million people now on Facebook participating in friendly communication, photo sharing, commenting on status, joining groups, and playing third-party game applications. Next to all of this activity, are advertisements that are easily purchased and generally more affordable to businesses of all sizes. Jessica says, “We’ve found small to mid-size businesses do especially well with advertising on social media sites. They don’t need to commission expensive market research to learn the online habits of their customers and can easily engage in self-selects based on the declared interests and geography of users.” Facebook ads provide both direct response marketing and awareness marketing opportunities in an online environment which is fresh, current, and exploding with growth potential.