If you follow the news, you’ve no doubt heard that the traditional media newpaper outlets are seeing record losses. More and more people are getting their information from the Internet. I am extremely happy to see it, as I believe that there is more freedom on the Internet than in any other media form today.
But as the newspapers fold, so does the advertising. I have been seeing a trend, despite nayayers who say that a downward economy spells doom for media outlets. Not the Internet, anyway. Actually, for those of us who rely on the Internet for our information and for ou livelihood (like me), we will be seeing an upward trend, as advertisers intend on shifting their focus to the Internet for their market.
This is a good articles from the eMarketer:
In our latest projections, released in August, eMarketer saw online advertising growing from $24.5 billion in 2008 to $28.5 billion in 2009. eMarketer benchmarks its online ad spending projections against quarterly reports by the Interactive Advertising Bureau (IAB), which uses PricewaterhouseCoopers (PwC) to conduct its surveys. For the first half of 2008, the IAB reported 15.2% growth for online ad spending, which is in line with eMarketer’s predictions.
Another factor confirming our predictions is that the combined growth rate for first half online ad revenues among the top four US portals—Yahoo!, Google, AOL and Microsoft—was 19%.
Although most of the following projections from a range of different analyst firms and researchers are likely to be high, since they were published before the recent outpouring of negative financial news, there is still a consensus among many analysts that spending growth for online advertising will continue to show double-digit gains in both 2008 and 2009. eMarketer agrees.
It agrees with my own thinking that in times of a weak economy, advertisers will spend even more on advertising. A sluggish economy means sluggish consumers; strong advertising is meant to shake the consumers from their depression and get them to spend.
eMarketer makes some excellent points:
Marketers should rightly ask, “What is behind the bullish projections for online ad spending, especially when most traditional media are taking the financial equivalent of body blows?” The seven reasons are as follows:
- The Internet is inherently more measurable and accountable than are traditional channels.
The Internet allows for better, more-granular targeting than do other forms of media. That reduces media waste and can save marketing dollars.
- The Internet is interactive, thereby allowing for a higher degree of engagement with consumer and business prospects and customers.
- Particularly among younger consumers, the Internet is accounting for a larger and larger share of total media time; numerous studies demonstrate that teens, millennials and other younger cohorts are spending more time online per week than they are watching television.
- The Internet plays into the consumer-in-control movement and therefore provides new opportunities for marketers to be a part of their conversations about interests, attitudes, shopping plans and even brands.
- New Web 2.0 phenomena such as blogs, social networks and Twitter provide marketers with the potential to gain rich insights into consumer behavior and attitudes (the Internet is like a perpetual focus group on steroids).
- The Internet, unlike any other medium or channel, allows marketers to reach prospects throughout the entire consumer buying cycle, from initial awareness through pre-information-gathering to sales and post-sale feedback and support.
This is good news to me– for one, I have relationships with online advertisers. I like it that the market is opening up to me. I want more advertisers to work with me. And two, this also means that companies will become more competitive; they will work a little harder to please the consumer and offer better deals and better service. So a sluggish economy, while not exacty great news, does have it’s benefits. Consumers should always be spending wisely, but now we have some leverage as well. Everything is shifting from the more traditional (and limited) avenues of information and advertising to the more instantaneous and broader avenues of the Internet and telemarketing.
December 12, 2008
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