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Internet Vies with TV for Media Time Yet Lags Considerably Behind in Advertising Spending

JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, has found that the Internet continues to rival TV for consumers’ time while print media suffers the effects of online media usage. According to a new report, “Media Consumption Patters: Online Vies with TV As Primary Medium,” online users spend as much time online as they spend watching TV, while users under the age of 35 spend more time online than on TV.

Both TV viewing and online use have increased during the past five years, although usage appears stabilized. Consumers say they spend over ten times as much time with TV and the Internet as they do with print media like magazines and newspapers. Despite this trend, however, advertisers continue to spend disproportionately on print, with newspapers garnering nearly three times the expenditure of online. Money spent on television advertising remains the clear leader among the marketing mix with advertisers spending four times as much on TV advertising as all online advertising.

“Neither relatively better targeting nor the increasing availability of branding-friendly rich media and video inventory have led to any demonstrable online cannibalization of TV spending, ” said David Card, Vice President and Senior Analyst at JupiterResearch. “But that’s partly because over half of users’ time online is spent in communications, like e-mail and instant messaging.”

So while online social networks might seem like the ideal mix of media and communications, advertisers must use them appropriately. Brand advertisers should rely on sponsorships, widgets, or branded microsites within the networks.

“Sponsoring personal-page themes and widgets that entertain or offer exclusive access to content also makes sense for reaching potential brand advocates,” said Emily Riley, Analyst at JupiterResearch. “But it takes a light touch. Marketing can’t be so intrusive that it risks creating negative brand associations.”

The complete findings of this report are immediately available to JupiterResearch clients online at http://www.jupiterresearch.com. For details on JupiterResearch’s methodology, visit http://www.jupiterresearch.com/bin/item.pl/methodology or email press@jupiterresearch.com to request a detailed methodology statement. For additional information on this report or JupiterResearch’s Advertising & Branding research service, visit http://www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupiterresearch.com.

About JupiterResearch
JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit http://www.jupiterresearch.com.

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