Friday, August 21, 2009

Trend Watch: Advertising Online

More small and medium-sized business advertisers are now spending their advertising budgets online than are buying ads in traditional media, according to a report from The Kelsey Group and research partner ConStat.

The penetration of digital and online media grew to 77% in August 2009, up from 73% a year ago, while penetration of traditional media fell from 74% to 69% during the same period.



"Penetration" is the percentage of businesses using a given type of media, irrespective of spending level. Small and medium-sized businesses reduced their overall spending on advertising and promotion by 23.5% over the past year but Digital/online rose as a percentage of overall ad spend from 22% to 36.8%. Spending on websites and profile pages increased by 26.8%.