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Ad CPM Will Suffer In 2008

Overall economy blamed

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Carl Fremont of Digitas thinks economic woes will have an impact on an online ad market where many key verticals have yet to see significant spending.

Fremont’s discussion on Silicon Alley Insider holds the opinion that online advertising doesn’t have as much participation in certain vertical markets as it could have.

"Many online verticals – financial services, entertainment, telcos, retail – are maturing," said Fremont. "Luxury brands, personal care, fashion and cosmetics are laggards. They have yet to spend heavily in digital."

The potential for those verticals to enjoy plenty of impressions exists. Fremont thinks a glut of impressions will lead to flatter, or even declining, CPMs.

When that changes depends on when more ad inventory hits the online market. If that occurs, Fremont believes key ad sectors like those for automotive, pharmaceutical, and telecoms will need to hold the kind of TV-style upfront sales that can put those ads in front of the right audience.

We think opportunities exist now for entrepreneurs who don’t fear the confusing signals coming out of Washington and Wall Streeet about the economy. If certain verticals aren’t spending on digital ads now, as Fremont suggested, there could be room to build a presence in something like personal care, establish its authority with content, and be a first mover when those marketers start looking for "new" outlets for their ads.

 

Ad CPM Will Suffer In 2008
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