According to the results of 2008, the American market of online advertising and search engine promotion grew by $ 2.2 billion against the backdrop of a reduction in the markets of traditional advertising media by $ 6.6 billion. In other words, a 34% reduction in advertising budgets was due to redistribution in favor of online advertising. Of these, accounted for media advertising accounted for a little less than a quarter - 23%. 72% was mastered by the contextual advertising market. The remaining 5% went to SEO redleos.com/pk/seo-services-in-islamabad/.
Of particular value to this graph is the fact that it does not have forecast elements. It reflects only the actual changes in the market.
The share of converting advertising budgets to the Internet from traditional media in the annual growth of the Internet advertising market (USA)
However, a similar picture, albeit less complete, due to the presence of the Internet sector in the form of a single media ad, is also shown by the global Zenithoptimedia forecast. The trend is obvious: the general market decline will stop, but the expansion of the Internet segment through the press and radio will continue. The volume of the latter will continue to decline until the market growth rate does not exceed 3-4%. This is the share traditional media “give” to the Internet in quiet years.
What about Yandex or Russia Market?
What awaits the Russian market of online advertising and promotion under the current conditions?
According to the forecast, Zenithoptimedia, based on the results of the first crisis half-year (IV quarter of 2008 and I quarter of 2009). The advertising industry expects a fall from 15% to 24%. At the same time, radio and printing will suffer the most: a drop from 33% to 40%. In the second tier, outdoor advertising (-22 / -30%), TV (-5 / -15%) and other media (-16 / -25%). The market of online media advertising will remain at the same level, or will grow by 12%.
Growth rates in relation to the previous year (Russia,%)
If the near future of advertising in print, on radio and billboards is beyond doubt, then the fate of online advertising can be fought.
The volume of the Russian advertising market in its distribution media
In absolute terms, the expected fall of advertising markets at the end of the year is 64 billion rubles. An amount three times the volume of the domestic market for online advertising and search engine promotion. Actually, the answer to the question regarding the growth of the Internet advertising or digital market redleos.com/pk/digital-marketing-agency-in-karachi/ during the crisis is the answer to the question of how many of these 64 billion will be spent on the Internet.
Analysts at Zenithoptimedia believe that in 2009, display advertising will increase by 0.9 billion. And, if you follow this line, another 1.8 billion rubles should be set aside for contextual advertising and SEO. Only 2.7 billion rubles, or 4.2%, is the conversion of peacetime for the US market.
Meanwhile, there is every reason to believe that in Russia this indicator was higher even before the crisis. By comparing the growth rate of the advertising market by media, you can approximately estimate the conversion of budgets. Back in 2007, the radio and the press missed at least 10% and 7%, respectively, which totaled 6 billion. For the past year, these indicators amounted to 6% and 23% or 6.5 billion rubles.
With the beginning of the recession, when evaluating an advertising campaign, indicators came to the forefront in terms of which Internet advertising is ahead of all other types of media: profitability, flexibility, a variety of tasks and the ability to monitor results in real time. The effectiveness of a well-conducted advertising campaign on the Internet can be very high. For example, for one of our customers, a large online store, the return on investment was:
- for Yandex market - 578%
- for SEO - 733%
- for contextual advertising - 158%
- overall efficiency for the online store - 604%