Internet advertising 'good for lead generation' during recession

Online advertising can become even more useful than usual during times of recession, it has been suggested.

According to Tsafrir Peles, co-chief executive at marketing company DMG, companies can reduce their expenditure by turning to the internet.

But he noted that the benefits go beyond this, something that could be of interest to IT firms looking to improve the efficiency of their lead generation efforts.

Mr Peles explained that people may be spending more time online as a result of the economic downturn, as they prefer to stay in rather than go out and spend money.

"People spending more time on the internet means they generate more conversions," he remarked, adding that companies using internet advertising should be aware of the potential it offers.

A range of methods are available to track effectiveness, said Mr Peles, allowing businesses to increase revenue at low costs.

"Once you are equipped with the right media capabilities and the technology to provide all these services, you are in a good shape," he concluded.

Recent Internet Advertising Bureau figures indicated that a record amount was spent on online advertising in 2008, with the total nearing £1.7 billion.

This represented a like-for-like increase of 21 per cent on the previous year, while advertising as a whole was down 0.7 per cent.

Written by Julian Poulter and Copyright "Selling People 2009"