Annual Ad Spending Study 2007: What Publishers Need to Know About Small, Medium, and Large Advertisers

Authors: Chuck Richard, Vice President & Lead Analyst; Sheila King, Director of Primary Research

This is the second report in our 2007 Ad Spending Study series. It extracts unique findings about small, medium, and large company advertising behavior from the results of Outsell’s annual Ad Spending Study, with an aim to help publishers grow advertising revenue. The report covers:

- Ad budget allocations and growth rates across all types of advertising media;
- Advertisers’ adoption rates for online advertising;
- Reallocation of spending from print media ads to other media;
- Effectiveness of Google vs. Yahoo! and Microsoft;
- Click fraud’s impact on advertisers’ online spending;
- Drivers of ad spending decisions;
- Top obstacles to buying advertising;
- Outsell’s recommendations for publishers.

Outsell surveyed 1,010 advertisers responsible for ad spending or for specifying ad budgets targeting corporate, healthcare, and consumer markets. The sample represents the total population at a 95% confidence level and a margin of error of +/- 3%.

Open table of contents

Executive Summary
Why This Topic?
Profile of Small, Medium, and Large Advertisers

Industries of the Advertisers

Allocation and Growth Forecast of Advertising in 2007 across All Media

Online – 2007 Forecast Share and Growth
Print – 2007 Forecast Share and Growth
Events – 2007 Forecast Share and Growth

Use, Effectiveness, and Adoption Rates of Marketing Methods

Keyword Search, Contextual Ads, and Behavioral Ads
Effectiveness and Use of Ad Methods across All Media
The Reallocation of Print Advertising Spending
Shifts in Use of New Media Ad Methods

New Media Advertising Management and Strategic Issues

Click Fraud – How Advertisers Are Responding

Essential Actions
Related Research
Methodology

Tables & Figures

Figure 1. Size Distribution of Advertisers by Number of Employees
Figure 2. Distribution of Advertisers’ Revenues
Figure 3. 2007 Forecast Total Annual Marketing Budgets
Table 1. Industries Represented by Advertisers in the Study
Figure 4. Forecast Total Marketing Budget Share and Growth
Table 2. 2007 Forecast Growth Rates of Total Marketing Budget by Size and Media Type
Table 3. 2007 Allocation of Total Marketing Budget by Size and Media Type
Table 4. 2007 Forecast Growth Rates of Online Marketing Budget by Size and Media Type
Table 5. 2007 Allocation of Online Marketing Budget by Size and Ad Type
Table 6. 2007 Forecast Growth Rates of Print Marketing Budget by Size and Media Type
Table 7. 2007 Allocation of Print Marketing Budget by Size and Ad Type
Table 8. 2007 Forecast Growth Rates of Events Marketing Budget by Size and Event Type
Table 9. 2007 Allocation of Events Marketing Budget by Size and Event Type
Figure 5. Use of Keyword Search, Contextual Ads, and Behavioral Ads
Figure 6. Effectiveness of Keyword Search, Contextual Ads, and Behavioral Ads
Table 10. Use of Ad Methods for Branding: Ranks 1-13
Table 11. Use of Ad Methods for Branding: Ranks 14-26
Table 12. Effectiveness of Ad Methods for Branding: Ranks 1-13
Table 13. Effectiveness of Ad Methods for Branding: Ranks 14-26
Table 14. Use of Ad Methods for Lead Generation: Ranks 1-13
Table 15. Use of Ad Methods for Lead Generation: Ranks 14-26
Table 16. Effectiveness of Ad Methods for Lead Generation: Ranks 1-13
Table 17. Effectiveness of Ad Methods for Lead Generation: Ranks 14-26
Figure 7. Percent of Advertisers Reallocating Print Trade Magazine Spending to Other Media
Figure 8. 2007 Planned Use of New Advertising Methods
Figure 9. 2007 Forecast Spending on New Ad Methods
Table 18. Factors Affecting the Selection and Use of Marketing Tactics
Table 19. Obstacles or Problems in Buying Advertising
Figure 10. Participation in Pay-per-Click Online Advertising
Figure 11. Bundled Advertising Purchase Preferences
Table 20. Click Fraud Estimate
Figure 12. Advertisers’ Opinions and Actions on Click Fraud