Tuesday, June 9, 2009

Forecast

Over the past months I have repeatedly written that the global economic crisis should accelerate "peretekanie 'advertising budgets to the Internet. And thanks largely to the process of Internet business could be affected by the crisis considerably less than other sectors of IT-industry.

In early February, were published the results of a study conducted in RuNet agency PR Technologies by order of IMHO VI. Results eloquent: more than half of Russia's largest advertisers are planning in 2009 to increase advertising budgets on Internet projects. At the same time, interestingly, online advertising attracts the advertisers is not the relatively low price, and especially the possibility of targeting and the availability of precisely targeted audience. Among other advantages are called transparent budgeting, as well as the opportunity for rapid assessment of the effectiveness of advertising campaigns on the Internet.

Figures

The study polled 70 respondents - they had become director of marketing and brand managers of companies included in the top TNS "top-100 advertisers on the number of outlets of advertising in the media" (2008), as well as companies that are, according to the "Video International, the largest advertisers in the automotive and financial industries, IT and telecom, as well as sector FMCG (goods of daily demand).

Specific figures are as follows: 93% of respondents stated that understand the benefits of the Internet as an advertising vehicle and going to use these advantages. 54% of respondents are planning this year to increase advertising budgets on Internet projects, and only 4% - on the contrary, reduced. But, fortunately, the four per cent in accuracy are offset by the other 4% - those who, in 2009 only to begin to work with online advertising. Most of those surveyed believes that the share of Internet advertising will grow in the future, although about one third of directors in 2009-meters will save the cost of online advertising the same. At the same time for 8% of those surveyed top managers of the establishment of a promo-site of their company is already a mandatory part of a marketing strategy.

Another important result of the study - a clear picture of what Runet attracts advertisers. According to respondents, the majority of companies are now more important than "long-" image advertising, but one that will contribute to the rapid sales. This implies a focus on advertising to clearly defined target audience. That is why the unique opportunities inherent in the Internet only target for the majority of advertisers are particularly important. There is a paradox: Advertisers in the Network has traditionally opposed such a combination of qualities, like getting into the exact target audience and mass.

Discussing the advantages of advertising campaigns on the Internet, the respondents remembered primarily for targeting and accessibility of the target audience (28%), the possibility of increasing the (low cost) in the number of special projects (15%), interactivity (13%). The relatively low cost of online advertising campaigns noted, only 2% of the respondents. But 6% of respondents consider the Internet as an alternative to television and outdoor advertising. As shown by other studies, the audience of several portals (eg search engines) is very broad and similar to the target audience of advertisers in the TV-advertising. However, approximately 36% of top managers still consider television the most effective media, especially for moving goods group FMCG.

An illustrative fact: growth or, conversely, a reduction in the budgets of the Internet is stronger depends on the industry in which the company operates. Here's an example: all banks and financial companies and 86% of manufacturers in 2009 would increase spending on Internet advertising. Companies that specialize in consumer goods (FCMG), behave more cautiously - the cost of Internet advertising will grow at only 56% of them. And the company's hi-tech and telecommunications sector is less than all the others are ready to increase their spending on the network. In 2 / 3 of cases, they simply leave the budgets at the same level. However, their level of advertising presence on the Internet is traditionally very high for many years.

Opinions

The company IMHO both commented on a study the agency PR Technologies: "The results generally confirmed the hypothesis of a redistribution of advertising media in 2009 compared to 2008-m. Qualitative analysis of preferences of various advertising media suggests that the main thrust of the reallocation of media mix s in the construction of advertising campaigns in 2009 will work with Internet sites. ... You can say that the appeal of online advertising - a result not only the reduction of marketing budgets, but rather a qualitative change in the Russian market of advertising. "

In turn Boris Ovchinnikov, director of the Research SUP Fabrik, said: "The economic crisis accelerates peretekaniya advertising budgets online. Advertiser of strategy of all, to maximize the coverage come to focus on efficiency and Measurability. For many, the crisis has been a good stimulus broken the old routine and conservative media planning. In crisis situations, everything is changing rapidly. ... In SUP Fabrik, we are also witnessing the emergence of online and new advertisers and increase the share of online advertising budgets of major advertisers".

And here are some comments from other market participants:
Alex Tretyakov, commercial director of "Yandex": "In our company, we expect that this year the share of Internet advertising will increase - both at the expense of increasing the share of the Internet in the budgets of advertisers, and by the arrival of the Internet for new clients. In particular, this concerns contextual advertising, which is in a crisis, more relevant than ever, because it directly increases sales".

Artamonova Anna, vice president Mail.Ru: "The fact that in crisis conditions, advertisers will begin to reallocate budgets to the Internet, we are talking long-standing and regular. The reason is that the Internet is by far the best advertising mediums on the ratio of costs/returns".

Tatiana Menkova, Analyst Investment Company "Finam": "Preconditions for the growth of advertising revenues Runet, really is. The crisis raises the requirements for effectiveness of advertising and the Internet offers the best opportunity to achieve a target audience at a cost of an adequate contact. In addition, despite the crisis , Internet penetration is growing, which also increases the appeal of advertising on various sites. ... In their own Internet projects "Finam" demand for advertising is more or less stable, given the fact that they have escaped correction in the IV quarter of last year. Probably this is due to the fact that this year's advertising budgets in most cases are situational in nature, they are taken for a period of not more than quarter, and sometimes even shorter. The decision on the advertising was adopted on the basis of the current challenges of companies and state economic conditions. As a result, there are plans to increase advertising on the Internet, but until they are transformed into concrete action".

Venues

A separate study has been to explore the ultimate advertising sites in RuNet. Analysts PR Technologies identified four most popular types of sites: thematic websites (28%, a clear focus on the attractive target audiences), media (24%, wide coverage), social networks (20%, also indicates a very high coverage, plus the possibility of a clear targeting of advertising messages), and search resources (20%, high coverage). Contrary to all predictions, the least popular advertising mediums on the Web have contextual advertising (6%) and the forums and blogs (8%). Also interested in a high interest to advertisers, social networks, even though studies show that they are very low advertising effectiveness.

... And something else

Still, the most surprising result of research - is that from the perspective of advertisers, low cost, quick launch campaigns, easy budgeting and even fashionable "viral effect" appeared in the list of advantages of internet advertising.

Another important observation: the Internet technologies are perceived brand managers and marketing professionals as attractive in terms of career. 61% of respondents gave a positive answer to the question of possible career success related to the implementation of innovative projects on the Internet.

And the last. Today, the Internet and television advertisers are seen as the most effective media channels. They believe their 26% and 36% of respondents respectively. But outdoor advertising has been on the list at the last place (14%), while last place was print media (4%).

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