Johnny Mathis, Jr.

Just more than 10 years ago, the Internet represented a new technology accessible and used by few. Now, 6.5 billion people worldwide are logging on, with the highest percentage of users coming from North America, Asia and Europe (Internet World Stats, 2007).

In 2007, the Internet is again bound to offer a dynamic year of change in the way we in the direct response business target consumers, as well as in the depth of consumers pursued.

Increase in Internet Spending

Consistently, Internet providers and agencies are predicting a rise in the number of consumers choosing to shop on the online. Surveys indicate that 41 percent of Internet users will increase their E-commerce spending in 2007. The main reason is its convenience for consumers whose free time grows shorter and shorter. Inevitably, the growth in online shoppers will lead to escalated competition in online spending dollars, with search advertising playing an increasingly important part.

So how will the online consumer find a product? Cowen and Co. reports that in 2007, 55 percent of consumers are expected to start their online shopping at search destinations, compared with 51 percent in 2006, creating a greater need for effective search engine optimization.

Increase in Internet Advertising Spending

Many companies are already valuing the strength of Internet marketing and have apportioned more of their advertising dollars online. Advertising Age predicts that TV media spending will experience only marginal growth (averaged at 3.6 percent) in 2007, since marketers are spending more money on other marketing media, such as the Internet, direct mail and events.

Many sources predict the trends will continue in coming years with the amount of money spent on Internet advertising eventually surpassing that of television and radio. This is an understandable increase given that Internet advertising is completely measurable and offers a high return on investment, as well as offering more of a brand experience. Companies like Procter & Gamble have found that their corporate Web sites attract more viewers than many primetime TV shows.

The amount of time consumers spend on the Internet continues to outweigh the budget dedicated to attracting them. It is worth considering that this leaves a greater opportunity to further develop an Internet marketing campaign to access these consumers.

As the Internet becomes more interactive — and with new opportunities like streaming video — the number of people on the Internet and the opportunities to develop a stronger marketing campaign due to new technologies will inevitably soar.

More Targeted, Larger Audiences

Arguably one of the greatest achievements of the Internet is its ability to appeal to more consumers, as well as drawing in a more diverse group of people. Unlike much TV media, online media accesses a wide demographic of consumers with a greater cultural and ethnic diversity, as well as a wider range of household incomes and ages. Its limits are endless.

Internet consumerism and advertising is predicted to increase for at least the next four years. It has become a forum for community, buying-and-selling and organizing our lives. Its expanse is perhaps best demonstrated through http://MySpace.com/, which is averaging 160,000 new members per day.

And the Internet's value just keeps growing. To realize the power of the Internet and interactivity, look no further than Google's $1.65 billion purchase of YouTube.

Johnny Mathis, Jr., is CEO of Livemercial. He can be reached at (219) 477-3900.