Marketing Budgets slashed once again
Website promotion techniques are constantly evolving, yet the amount of money being put into display advertising spending has markedly dropped, it has been asserted.
Neilsen: Online display adspend investment falling
Tuesday, March 22 2011 by John Burns
Over one-third of the UK’s top 100 online advertisers have shrank the amount of money devoted to online display adspend in 2010, according to research published today.
“Marketing budgets [are] failing to reflect the rhetoric heralding the importance of the medium,” said Marketing, the recipient of Neilsen research compiled exclusively for the magazine. In a world where managed emarketing is fast becoming the number one investment for companies looking to increase market share, it seems counterproductive, the publication continued.
Mobile provider O2, part of the Spanish Telefonica Group, was the biggest online display advertiser in the UK, though still managed to achieve this after reducing its budget by 30 per cent year-on-year to £9.9 million.
Meanwhile, Procter & Gamble, which remains to be the UK’s biggest advertiser, spent a measly 1.3 per cent of its overall marketing outgoings on paid-for online display ads. In a similar fashion, Unilever invested just £2.6 million – 1.9 per cent of its total media spend.
Perhaps unsurprisingly, the Central Office of Information (COI) – which acts as the governments overall centre of excellence for marketing and communications – posted the biggest year-on-year fall in the top ten, cutting expenditure by 52 per cent year-on-year to £4.6 million.
However, Google increased investment by 175 per cent to £4 million, effectively registering 61 per cent of its total media spend on the medium.
Marketing continued: “Although the figures do not include spend on keyword search or social media, they suggest that major FMCG firms still allocate only a small proportion of their budgets to paid-for online advertising.”
Last week, a study from LinkShare claimed that marketers will increase attention on mobile marketing by developing more communications and applications as part of website promotion tactics. This, it believes, will make it the fastest-growing marketing sector in the UK during 2011.
Living Streams “Improving clients’ profitability through better use of the internet”.