The Case for Online Advertising - Part 1: Spend where they Consume

I initially tried to create one long post about online advertising, but as a part of my New Blog Resolution I thought I would break it into smaller bits and then put it all together at the end.

On-line media is important because of the % of media consumption it makes up (and this is ever increasing).  The data used below is a little out of date (2005), and I'm sure that both the consumption and advertising have grown since, but I would still expect that they are out of balance (more posts to follow showcasing some issues).

According to On-line-Publishers.org, in 2005 6% of advertising $$ were spent on-line vs. 23% of media consumption was on-line.

This brings the question to advertisers - what is holding you back from investing more heavily in this high growth medium? 

The Internet offers better targeting and CRM (customer relationship marketing) opportunities due to the enormous amounts of data that some sites have about their audience.  In addition, most ads can be set in programs that provide targeting far superior to that achieved in traditional media.  In addition the net offers more formats of advertising (banner, video, pop-ups, ad-words, search, etc) that can be tailored to reach the right person in the right place at the right time.

With the Internet being able to stream other forms of media (IE. Internet movies, TV and Radio) it will become an increasingly important media channel.

The question to marketers is where are you spending your $$?  Is it where your consumers are spending their time and $$?  Are you prepared for media consumption on-line to grow?