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Google: Advertisers Allocating Real Money to Online

Corporate marketers have made online advertising a standard part of their media budgets as online seems likely to accelerate even more in 2006, Reuters quotes Tim Armstrong, Google's North American ad sales VP, as saying. This year has been the turning point, with advertisers switching from testing to investing in online, according to Armstrong.

"Some are putting 10 percent or even more than 10 percent of their 2006 budgets into online," he told Reuters.

He says two factors are driving the increase in online budgets: Consumer adoption of the web has outpaced advertisers' commitment, and Madison Avenue has begun advising clients to bridge the chasm.

Google "started with text, we now offer graphic ads and are moving into print advertising," Armstrong said. Video advertising will likely be up next in Google's strategy of offering relevant advertising wherever possible.

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