Internet Marketing Firm, Morning Falls, Sees Online Ad Spending on the Rise

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Domestic marketers spent more money to advertise online than in newspapers last year, making the web now second only to TV in total media spends. Advertisers are flocking to the Internet for a variety of reasons, reflecting a trend that is expected to continue.

Lower costs, wider reach and greater accountability among reasons for spending growth.

Despite the recent economic downturn and reduced marketing budgets, online ad spending continues to rise. According to Jason Gamwell, CEO of Morning Falls, a Denver-based Internet marketing firm, statistics show online ad spends were up 13.9 percent to a record $25.8 billion in 2010. Gamwell expects this trend to continue for many reasons, from the expanding use of social networks to the shrinking numbers in newspaper ad spending and readership – to the lower cost and higher tracking advantages of the Internet itself.

2010 was the first year in history U.S. marketers spent more money to advertise online than in newspapers, and the first year online readership exceeded print readership. Overall, newspaper spending, including advertising in print and online editions, fell to $25.7 billion, a decline of 6.6 percent, making Internet advertising second only to TV in media spends. Source:

The reason for this continued growth says Gamwell is that Internet marketing is relatively inexpensive when calculated using the standard formula of the ratio of the cost against the reach of the target audience. When advertising online, companies can reach a wider and more diverse audience for a fraction of the cost of traditional advertising.

The Internet also enables consumers to research and buy at their own convenience. Studies show over 90 percent of customers go online to check out potential purchases, competitive pricing, consumer ratings, and other factors before they buy. As a result, businesses have the advantage of appealing to consumers in a medium that can bring results almost instantly.

Online advertising also offers greater pricing flexibility as firms can run campaigns based on a variety of payment options such as pay per impression and pay per click; and, it provides more accountability, as marketers can measure their return on investment (ROI) quicker and easier than with other forms of advertising.

29 percent, or one in three businesses, say they plan to increase social media spending this year.

According to Gamwell, the advent of social media networks is also fueling online ad spending. In a report published by, small- and medium-sized firms plan to up their online budgets this year by nearly 29 percent to $40.6 billion from $31.5 billion in 2009, primarily to leverage the rapidly growing social media phenomenon.

With over 550 million users, Facebook is now the web’s most popular site. Almost 72 percent of U.S. Internet users are now on Facebook, and over 70 percent of local businesses are marketing through this social media site – more than anywhere else online. Source:

Naturally, added Gamwell, Internet media spends are most effective when part of a mix of other mediums, including print, radio, and TV – depending upon a brand’s budget and demographics. Despite the dramatic changes brought on by the web, some things never change, such as the fact that repetition and consistency still bring the best advertising results, said Gamwell.

About Morning Falls. Based in Denver, Colorado, Morning Falls provides Internet-based media solutions to businesses worldwide. Established in 2004, the company has generated hundreds of millions of dollars in revenue for its clients around the globe. Morning Falls offers advertisers a single point of access to thousands of premium advertising channels online and billions of Internet users worldwide via its robust display advertising network, cutting-edge ad serving technology, and state-of-the-art analytics. The firm also provides lead generation, search engine optimization (SEO), and social media marketing as well as marketing and advertising support. More information on Morning Falls can be found online at

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Felina Martinez
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