The results are in and the 2006 American Advertising Federation's Survey of Industry Leaders on Advertising Industry and New Media Trends reveals that most advertising executives plan on shifting a sizable percentage of television ad dollars to online advertising in the next few years.

The survey, prepared by Atlantic Media Company, found that not only are online advertising budgets expected to rise significantly in 2007, but also that by 2010 most advertising agencies will have shifted upwards of 10 percent of their budgets away from television into online forms of advertising.  In fact, more than 40% indicated that between 20 and 50 percent of those television dollars would move online.

Of interest to those already fully entrenched in online advertising, the survey found that over half of the responding advertising agencies have found behavioral-based online advertising to be the most effective.  Demographic and contextual advertising were cited as most effective by approximately 30% of the agencies.  Furthermore, search and online video were cited as the types of advertising to receive most of the 2007 online advertising dollars.  Not surprisingly, these forms of advertising were also cited as the most of effective forms of online marketing.

The survey also asked industry leaders about the success of recent campaigns and brand-building initiatives.  According to the study, we should take a page or two from recent advertising efforts by Dove, Burger King, Volkswagen, Honda, and Nike.  These companies had the most effective campaigns integrating traditional advertising with new media sources, such as online advertising.  In addition, Coca-Cola, Nike, Apple, Starbucks, and McDonalds were said to have the best brand images, according to the responding advertising executives.

So what does all of this mean for you?

1)  It shows that online advertising is poised to heat up.  With major advertisers getting into the game and shifting their advertising budgets online, now is the time to get your online advertising strategy established.  Don't be caught playing catch up in a few years when the big guys show up.

2)  Look at the companies cited as having successful ad campaigns and brand images.  What can you learn from them?  What did Coca-Cola due to secure its spot as the number one rated brand?  Study Nike's approach.  They not only had one of the most successful advertising campaigns last year, but also ranked in the top 5 brand image category.  What Nike strategies can you apply to your business?

[Download the Survey Analysis in PowerPoint Format]