The results are in, and 2007 was another record year for Internet advertising. IAB just released the data, which you can read on Mediapost -- http://blogs.mediapost.com/research_brief/?p=1717. This is the fourth year in a row of record ad spending on the net.
Internet advertising revenues were up 26% in 2007 to $21.2 billion in the U.S. To me, this just shows the power of the Internet and how marketers of all sizes need to pay attention to the opportunities the Internet presents for getting the word out about their brands. The Internet gives people access to instantaneous information, and the younger generations are embracing it. If my son, a recent college grad, needs to look up a movie, a phone number, directions or any piece of information, he goes to the Internet. I'm inclined to pick up a newspaper, phone book or a paper map.
I think the biggest challenge in all this Internet advertising growth, however, is understanding how to make the best use of this new medium. I think that most businesses do not understand how to engage customers. They are clueless about social networking and viral marketing. I've talked to my young adult kids about this, and they agree. They see social networking and word-of-mouth excitement as just happening. They believe it cannot be influenced by marketers. I believe my kids are wrong. Savvy marketers can use this medium, which has now become quite well established, to influence consumers simply by giving them the information they need before making a purchase decision. Later, they can maintain a relationship with updates and information on product usage that is easy to get and understand. Marketers should start with the basics.
There's a lot of opportunity out there. What's your opinion? Post a response. Email me: firstname.lastname@example.org.