CAMPAIGN.I: Online ads do work, E-Marketing survey says

More than 70 per cent of advertisers believe that online marketing is effective, according to a new survey by E- Marketing.

More than 70 per cent of advertisers believe that online marketing is effective, according to a new survey by E- Marketing.

The report also found that businesses are spending an average of 10 per cent of their marketing budgets online, with most expenditure focused on banner ads. The findings indicate that TV and press revenues may suffer from the growing popularity of new-media advertising.

The report, which coincides with industry criticism of the effectiveness of online advertising, suggests that low effectiveness is a direct result of poor strategic planning rather than a failing in the technology itself. E-Marketing's research shows that new online advertising methods look set to overtake banner advertising.

WAP and interactive TV advertising are to become very popular media, according to the research. It expects that WAP, which is used by only 4 per cent of advertisers, will be used by 31 per cent over the next year, and predicts that the use of interactive TV will grow from 9 per cent to 23 per cent.

The research also showed that less than half of advertisers using the web are employing any evaluation techniques to measure their return on investment. More than 80 per cent of companies don't yet have the right technology in place to maximise the effectiveness of their online ads.

Paul Griffith, E-Marketing's chief executive, said: 'E-mail marketing can be remarkably effective but it must only be used if you have the recipient's permission, otherwise you run a serious risk of alienating the consumer and damaging your corporate reputation.'