Measurability ‘Makes Internet Advertising Popular’

by Stephen Logan on 25th January 2010

Companies choose to spend more money into their online marketing budgets because it is simpler to measure the return they are getting on that investment, an industry commentator has asserted.

Chief executive of the Internet Advertising Bureau Guy Phillipson highlighted the case of Capital One, which switched its entire budget on to the internet, so that it could "measure every scrap of its spend".

He pointed out that pay per click services and sponsored search allows firms to have their products exposed to the public at a low cost and be made aware when a consumer has engaged with an advert.

Regarding Capital One, Mr Phillipson remarked: "As people click on them and buy their credit cards their return of investment is very clear. That’s something they wouldn’t have with press advertising, for example."

A recent report by Deloitte forecast another year of growth for online marketing, predicting that it could increase faster than promotional activity on other technology mediums.