Merrill Lynch projects that both search and branded advertising will grow online next year, up 27% and 21%, respectively. But continuing to put the bulk of online ad dollars on large sites could be a mistake.

Big, particularly on the  Internet, may not be better. According to new research from Media-Screen, when brand managers and media planners are choosing where to place their ads online, they should not ignore smaller sites with less traffic.

The “Netpop | Response” study found that small, long tail Web sites are indispensable to consumers - and they provide a new way for brands to position ads where users want to see them. Interest in the products and brands advertised on smaller sites is greater than on larger sites.

According to the study, 42% of sites with less than one million unique visitors a month advertise products of interest to their viewers, vs. 39% of sites with more than one million visitors.

“Consumers have gained control over the content they consume online and advertisers need to adjust their strategies to match,” said Josh Crandall of Media-Screen.

“By advertising on smaller Websites, those that consumers are visiting based on their personal interests, companies can reach a highly engaged consumer with a message that relates to a subject that is important to them.”

Source: “Bigger Sites May Not Be Better for Online Advertisers,” eMarketer 01/16/07.

Related Post: “Mixing Search and PPC Ads,” EBT Blog 12/17/06.

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