The following article highlights what we all know is happening: Internet advertising is very effective and is being used more and more by consumers.

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Madison Avenue Sifts Through 'Clutter'

Brian Steinberg and Suzanne Vranica
The Wall Street Journal January 3, 2007

Consumers may see fewer commercials on television in 2007 -- but a greater variety of ads on the Internet.

Amid all this upheaval, here are five trends likely to gather pace in the coming year:

Jazzing Up Search Ads:

Paid-search advertising on the Internet is one of the medium's fastest-growing categories, but the format isn't the most imaginative. Web surfers usually see a company's name that is also a clickable link, with some words of text underneath. Not too exciting, but advertisers are trying to do more. Once focused mostly on driving consumers to make a purchase, search ads are now starting to highlight other ideas -- even if only in a few words.

Ron Belanger, vice president of agency development for search marketing at Yahoo, believes consumers are already starting to see "more sophisticated, creative, in some cases humorous" ideas for the words that appear in search ads. In some cases, this means tying the paid-search ad back to a larger ad campaign and the slogans and phrases used elsewhere, says Penry Price, Google's head of North American sales. For instance, the phrases used in a search ad could echo those used in a slogan or jingle in a TV spot. What consumers will hopefully see, he says, "is more messaging that will remind them of what they've seen maybe on television or what they've heard on the radio or what they've seen in newspapers or magazines."

Developing these new techniques is essential for Internet advertising, say media buyers. The Web is better known for direct-response advertising, not image and brand promotion, which makes a more memorable splash.

"Me" Media:

Advertisers have long put their ads on selected Web sites, magazines and TV programs. Increasingly, they are digging a little deeper, seeking out well-known writers, bloggers and other authoritative personalities. For example, International Business Machines Corp. last year sponsored a series of interviews hosted by Geoffrey Colvin, a writer for Time Warner's Fortune. The interviews -- with high-ranking corporate executives -- appeared in print and online, and IBM ads were seen adjacent to the content. "What we are looking for is to attach ourselves to interesting people or topics that are very relevant for us," says Deirdre Bigley, IBM's vice president of world-wide advertising and interactive.