Top US Marketers Plan Online Ad Investment

09 January 2006

Many of the biggest brands in the US are planning to boost their online marketing spend this year.

A survey of marketing chiefs within Fortune 500 businesses reveals that nearly half expect to boost their internet ad budgets by around 30%.

The quarterly report, commissioned by Credit Suisse from TNS Media Intelligence, quizzed 100 CMOs on their plans for advertising dollars. They were surveyed in September and then again in November.

The results forecast that overall online adspend will increase 32% over last year to $16.6 billion (€13.73bn; £9,45bn).

And a measurable return on investment is the main reason cited for the internet's increasing share of ad budgets. The popularity of the medium among marketers also mirrors changing consumer behaviour.

Says Credit Suisse research analyst Heath Terry: "The average consumer spends about 30% of their media time online - that's why you're seeing all that catch-up spending."

However, online is expected to take just 6.5% of the nation's entire advertising budget in 2006, a rise of 1.5% over current spend.

The CMOs had good news for the beleaguered newspaper industry, expecting to spend more on the medium, and less on broadcast and magazine ads.

They revised upward their projected newspaper spend from 12% in September to 16% in November. For broadcast TV, their September estimate was 18%, but dropped to 16% by November. And their projected magazine adspend fell from 22% in September to 15% in November.

Data sourced from; additional content by WARC staff