11 October 2007

Intel to Ramp Up Online Ads


Intel starting next year, will require its “Intel inside” marketing partners to devote to online marketing at least 35% of the ad dollars Intel provides to computer makers through its co-op program. Among the companies in Intel’s program are technology giants like Dell, HP, IBM, Lenovo, Sony and Toshiba.

Intel is also changing the media outlays for its own ads to more than 50% online in another two years, from about 15% two years ago. Intel spends about $300 million a year worldwide on its own advertising. So about $150 million will go online every year from Intel.

The reason, according to Intel executives, is that research shows consumers are already turning more to the online media when they consider buying products like those with Intel CPUs, which include desktop and notebook computers.

A survey of how consumers are influenced in their buying decisions, which Intel undertook this year, showed that three or four out of the top five sources have something to do with the online media.

Spending on ads in the online media in the United States has been growing rapidly as Americans alter the way they consume media. In the first half of 2007, Internet ad revenue totaled almost $10 billion, the IAB and PWC reported last week, an increase of nearly 27% from the same period a year ago.

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