Forrester: Brand advertising will lag direct marketing on Web

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On the heels of an online advertising effectiveness survey released Sept. 24 by the Internet Advertising Bureau, Forrester Research concludes in a new report that until 2001, brand advertising will substantially lag direct marketing on the Web.

Based on interviews with 50 advertisers who each spend more than $100 million annually in overall advertising, Forrester found that Web advertising is considered less effective than all other media, with the exception of billboards, in creating brand awareness, said Bill Doyle, senior analyst at Forrester and author of the report. Forrester also found that these advertisers said they now spend a ``miniscule'' amount of their total ad budgets on Web brand advertising. Direct marketing, on the other hand, defined as campaigns that generate an order or request for further information on the Web, is considered a more effective use of Web advertising, Forrester reports.

However, the tide will shift after the turn of the millenium. While 60 percent of these major advertisers now each spend less than $500,000 annually on brand awareness Web campaigns, by 2002 that figure will reach $8 billion, said Mr. Doyle.

Copyright September 1997, Crain Communications Inc.

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