ChasNote

And it’s because of that, speculates TNS Media Intelligence President-CEO Steven Fredericks, that the nation’s 50 largest advertisers continue to increase their investment in TV, despite the fact than online advertising is more efficient and less expensive (see Mediapost).

“Through the first nine months of 2006, U.S. advertisers spent $7.2 billion on online advertising–over a billion dollars more than the $6.1 billion they spent online during the same period in 2005, according to TNS MI’s figures, which include only display advertising and do not factor in an even higher rate of growth for online search advertising. TNS MI estimates that online display ad budgets are now expanding about 18%, but if the even faster-growing search category–rising at a rate of more than 30% per year–is factored in, the underlying rate of Internet ad spending is growing even more rapidly, said TNS MI President-CEO Steven Fredericks.“

This growth, though, is being driven by smaller and mid-sized advertisers as the top 50 national advertisers increased TV as part of their mix from 2005 to 2006.

“…while bigger advertisers are boosting their online ad budgets at a lower rate, Fredericks noted that their online buys are going further relative to their traditional media dollars. Yet the cost savings are likely being reinvested in traditional media, not online, he said…’I'm not sure what the reason for that is, but I think it may be that staying with traditional media is just an easier thing for them to do right now.’”

Take the easier solution over the one you know works better and costs less??  Oh my!