Will 2006 Be A "Banner" Year?

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Will 2006 Be A "Banner" Year?

I made the observation in my post on Yahoo! vs Google that CPM advertising (ie banners and sponsorships) may be making a relative comeback in comparison to search in 2006.

Here is some data from the BtoB online survey "2006 Marketing Priorities and Plans" of 366 senior marketing executives that seems to indicate that observation is correct.

In 2006, 72.0% of marketers plan to increase online budgets. Within Internet spending, the specific media that will receive the greatest share of marketers' online budgets in 2006 will be

Web sites (30.3%)

e-mail (22.0%)

search (20.3%)

sponsorships (10.3%)

I take "web sites" and "sponsorships" to mean CPM based advertising. If that is a correct assumption, then it seems to indicate that twice the amount of money is going into CPM advertising in 2006 than is going into search.

January 24, 2006 Venture Capital and Technology | Comments (3) | TrackBack (1)

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Tracked on Jan 24, 2006 3:03:15 PM

Comments

I interpret this differently. If you read the detailed data of this study (see link below), "Banners" received 5.4% of responses and "Sponsorships received "10.3", while Search received "20.3". By "Websites" (at 30.3%) I believe respondents were referring to investments in their own sites/microsites. The importance of, and increased investments in websites, in my view, speaks to the once-controversial acquisitions by Digitas of Modem Media and by aQuantive of Razorfish. Online marketing services companies must increases have website development as a core competency. http://www.btobonline.com/page.cms?pageId=127

Posted by: MMay | Jan 24, 2006 3:07:12 PM

The summary links to the underlying data, which says something very different from the quote, the summary and even the full article.
The question asked in the survey is "Within your Internet spending, which medium will grow the most as a percentage of the marketing budget"

And 30.3% say that "web site" will "grow the most." "Banners" is a separate item, and 5.4% say it will grow the most.

To the extent that any extrapolation is reasonable, I might interpret this as saying that they will be increasing spending the most on their _own_ web site, and to the extent they are increasing spending on the sites of others, they prefer search (CPC) to banner/sponsorships (CPM) 4-to-3.

But maybe the best lesson is "design your surveys well" because otherwise a lot of confusion and misinformation can reign.

Posted by: Ray | Jan 24, 2006 3:43:14 PM

366 "marketing executives" asked a multiple-choice question is a weak sample to represent online ad dollar flows.

The IAB works with PWC to collect quarterly data based on actual spending as reported by a sample of sites -- its data tells a MUCH different tale of where dollars are flowing.

http://www.mediaweek.com/mw/search/article_display.jsp?schema=&vnu_content_id=1001525518

Note that Google alone in Q3 was 34% of all online budgets, and online budgets have been trending towards performance-based media for two years (search, PPC, CPA). To suggest "more than twice" as much will flow into CPM-based media in '06 flies in the face of all (good) data and recent trends.

Posted by: Chris | Jan 26, 2006 7:31:22 PM

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