The new-media advertising spend for the next year is set to
increase, according to a new study conducted by ISBA and the Advertising
The survey, which looks at how major UK advertisers are using new media
in their marketing communications, states that two-thirds of companies
polled advertise on the internet - of which one-half plan to increase
their spend next year. However, 12 per cent expect to see a decline in
In the main, advertising spend in new media is low with one-half of the
companies surveyed only allocating £50,000 or less per year. Some
10 per cent do spend more that £500,000, and of these advertisers
the financial, auto and durable sectors were dominant.
The report also points out that those companies which spend more than
£10 million on their overall marketing and communications are the
most likely to plan an increase in expenditure. However, 71 per cent of
those in the financial sector expect new-media spending to decline or at
best remain the same - indicating that advertising spends may have
peaked in this sector.
Debbie Morrison, ISBA's director of membership services, said: "The
greatest surprise is that new media remains very firmly within the remit
of marketing departments - even when projects involve e-commerce or
other heavily technical activities. New media is seen as a standard
tool, funded and managed by marketing.
"Given this, it is striking that almost half of the advertisers surveyed
believe that they are still failing to successfully integrate online and
Morrison stated that the report highlighted that success in new media
and e-commerce depended on there being a clear strategy and vision at
the highest management levels. "There needs to be board-level
understanding and commitment to the role of new media within the
business," she said.
"The greater the investment and the stronger the commitment to
accountability - in developing strategy and carrying new-media
communications forward - the greater the success. Those companies which
have been most successful are those that have had the most visible
new-media 'champions' at senior management level."
Jonathan Lace, the author of the report and the Allied Domecq associate
professor in advertising at Southampton Business School, said: "Despite
the burst of the internet bubble, the situation among leading
advertisers appears robust. Spending on website development, e-commerce
and internet advertising will continue."
The report also found that more than 60 per cent of companies have used
both direct marketing and public relations to drive traffic to
Three-fifths of companies have used direct marketing in their e-commerce
activity and 35 per cent have used sales promotion.