Digital media analysts Outsell Inc. have projected in their annual advertising study for 2009 that some $65 billion (£39 billion) is due to be skimmed off the top of traditional advertising budgets and reallocated online.
Major brands are going through some hefty corporate liposuction, sucking the fat media budgets out of TV and newspaper and plumping up online spending. The trend towards digital has been talked about for quite some time, but according to Outsell, the money will not be transferred directly to an online advertising equivalent of the traditional ads.
Instead of investing in internet advertising, companies are increasingly looking to spend money improving their own websites, with Search Engine Optimization (SEO), web analytics and good quality relevant content.
Chief executive at Outsell, Anthea Stratigos spoke in an interview with Forbes: “The marketing dollars companies now spend on their own sites is equivalent to all TV ad revenue for the year. Eight years ago we said that the Global 2000 would be the dot-coms of tomorrow. That’s what is playing out.”