Budget Survey Sees Big Drop In 2011 Online Ad Spends

A White Paper on marketing budgets for 2011 suggest a drop in online banner advertising, digital magazines and microsites is coming, while spends for search engine marketing will remain the same.

The report, done by Goldstein Group Communications and Hearst Business Media, found companies had a greater "understanding of the value of search engine marketing. When asked to name their companies' single best source of quality leads, search engines occupied the top spot this year for the first time, ahead of the historic favorite, the company's web site. Marketers seem to be indicating that they believe success in using search engines to drive traffic will bear fruit more than most techniques."

However, those surveyed indicated they would not be increasing spends on SEM. We will have to wait and see if online spends go the way of those surveyed.

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About the author

Frank Watson has been involved with the Web since it started. For the past five years, he headed SEM for FXCM -- at one time one of the top 25 spenders with AdWords. He has worked with most of the major analytics companies and pioneered the ability to tie online marketing with offline conversion.

He has now started his own marketing agency, Kangamurra Media. This new venture will keep him busy when he is not editing the Search Engine Watch forums, blogging at a number of authoritative sites, and developing some interesting online community sites.

He was one of the first 100 AdWords Professionals, a Yahoo and Overture Ambassador, and a member or mod of many of the industry forums. He is also on the Click Quality Council and has worked hard to diminish click fraud.