A study eMarketer magazine has found that online advertising has remained strong during the global economic downturn thanks to the high value and “dependable” return on investment (ROI) that it affords.
The online marketing magazine said that although some firms have pulled in the reins on their advertising budgets, the amount of spending on online advertising has actually increased during the recession.
Karin von Abrams, eMarketer senior analyst, commented: “The UK is a mature market for online advertising and the internet is firmly established as an accountable channel that can deliver excellent return on investment.”
“If anything, the recession and the potential for further economic uncertainty make an even stronger case for the online option.”
Ms Von Abrams made her remarks after another report, by media investment company GroupM, indicated that the advertising market could be looking up – at least for online advertising.
The report noted that more and more sectors of UK industry are moving towards online marketing due to its unparalleled strengths when it comes to increasing the visibility of their brand and boosting their profit margins.
Yet another study, this time by PricewaterhouseCoopers and the Internet Advertising Bureau, found that online advertising soared above an otherwise depressed advertising sector last year, with a 4.2 per cent increase in spending among companies, compared to 2008.
A report by Forrester Research has also concluded that online marketing can even boost offline sales. Forrester’s study found that almost half of all retail sales are influenced by a customer’s experiences online. Email marketing and special promotions via retailers’ websites are very good at directing customers to the retailer’s stores.