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Another Example That Internet Advertising is Holding Strong

...in this economy.

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There has been a lot of talk about the online advertising industry being in trouble because of the economy, yet we continue to see example after example of the contrary. The latest example is highlighted by VentureBeat, and concerns ad network Glam Media, which despite making job cuts earlier in the year, is still seeing growth in advertising:

Glam Media, one of the newfangled content and advertising networks assumed by many industry observers to be vulnerable to financial meltdown, says it still hasn’t seen any marked decline in online display advertising. Yet, to be cautious, it is slashing salaries by moving to a system called “variable pay.”

Glam

Glam may be being cautious, and who can blame them, given the amount of doomspeak regarding the industry, but we continue to see evidence of growth. For example, the Interactive Advertising Bureau (IAB)showed us that the third quarter was the second highest of all time with Internet ad revenues reaching nearly $5.9 billion. The IAB makes up 86% of online advertising in the U.S.

eMarketer recently showed that while growth is projected to slow in 2009, it is still growing. It says online ad spending will reach 25.7 billion in 2009, which is 8.9 percent over the $23.6 billion that will be spent in 2008, although it did predict 14.5 year-over-year growth for 2009 back in August.

Online Advertising Slowing, But Still Growing!

As far as small businesses are concerned, Ad-ology has released some survey results indicating that over a fourth of them plan to spend more on advertising in ’09, and another 60% plan to spend the same as this year. And with regards to online advertising specifically, 69% intend to spend more or the same next year.

Interestingly enough, participants in that survey did not seem very interested in rising trends in new media. 77% do not use online video, 83% do not podcast, and 82% do not use mobile advertising.

Another Example That Internet Advertising is Holding Strong
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  • http://www.mobilemini.com storage containers

    It’s real good to see internet advertising still holding strong despite the US’s recession. I’m still worried for things to come with SEO and internet marketing agencies.

    • Chris Crum

      SEO is going to face some obstacles despite the economy as the search engines change how they deliver results.

      • http://.www.get-website-results.com Cory

        I think that localized search results is great for local businesses. As an SEO, I still believe that sites should be optimized for their products and services and where they offer those products and services to. I’d be willing to bet that the locally optimized site is going to get better rankings than a local site which is not optimized. And…an optimized site is an easier read for the website visitor. Right away the visitor can tell what is being offered, and where it’s being offered. In my opinion that’s something lacking on many websites.

  • Guest

    The company may be doing well but they are laying off their employees… This is usually a sign that something else is going on. And even if nothing else is wrong, lay-offs are one of the big fears in this kind of economy. A strong company and indusrty will be able to retain its employees.

    And the economy is largely emotionally driven anyways, so when a company that is supposedly having success is laying people off, it really isn’t going to make people feel too good about the state of things.

    Of course some online media will maintain success in our current state though, it is cheaper in most cases. So money will naturally shift to it from other channels.

    This industry is in no way recession proff. There just is no such thing, this is common sense. What would help (help, not be the cure all) our overall economy, however, would be if we actually produced something; as opposes to just providing a bunch of services with no real product.

  • http://www.mediashakers.com Mediashakers.com

    We have been receiving renewals of most advertisers and are actually projecting growth.

    Hope this continues.

  • http://www.mytwincitiesgrapevine.com Guest

    Local and smaller business should look more to top notch, local web sites to advertise online. Sites like MyTwinCitiesGrapevine.com, SacramentoGrapevine.com, ChicagoGrapevine.com and many more across the nation, offer the smaller advertising budget, great bang for the buck
    These sites focus locally, have more then reasonable advertising rates, and page view rates are sky rocketing every daily. MyTwinCitiesGrapevine.com combines the best features of the big social websites, into a great, all in one, one stop website. Suppling users with every thing in one place, has made the Grapevine.com sites, hidden gems for advertising. But you now how good things go, they wont be hidden to advertisers for long.

    • http://howtostartyourownsmallbusiness.blogspot.com/ lol

      let me guess you own those sites lol

      • Guest

        Don’t own them, wish I did. They are just a great source for advertising. There are many Grapevine.com communities across the nation, and you can advertise with all of them, or just a few. There are many opitions to advertising, and MyTwinCitiesGrapevine, and others have opened up a great affordable market. So advertising, like other things, sift during a poor market. Just need to look at better more local options.

  • http://www.diamondonnet.com Diamonds

    Google’s personal search results can really hurt SEOs, if people start using this then organic search won’t be as organic as it used to be.

  • http://www.RandMediaGroup.com Ryan Evans

    Great post Chris. Traditional advertising is getting hit very hard right now and it is going to get worse. The costs to advertise in traditional media are flat or increasing, while the impact is falling precipitously. This is only being exacerbated by the recession.

    There is a very compelling argument to be made that shifting ad dollars to digital and away from traditional media will likely decrease ad spend while increasing ROI.

  • http://www.business-trader.com.au GuesPeter

    Here in Australia I run a business for sale website called www.Business-Trader.com.au. Our monthly online sales for 2008 have been quite consistant, but still an increase on Year to date sales. I agree 2009 will be very interesting year, but to be honest, my instinct is telling me that online sales will definitely increase o 2008.

  • http://www.rankontoponline.com Rank on top

    sales in paper are dying and we can see an end in 2014 or so,

    As its cheaper to pay for hosting and a website than advertising in the yellow pages or dext,

    Even if a company doesnt have a website, you still can promote them on the web using several online communities.

    Also you can Target thier Local area or city or town.. it works for us.

    thanks.

  • http://www.yain.com Edward Han

    I can see the trend moving from offline to online advertising. Personally, I do not read newspaper instead I go online to read the news. Guess we will be moving towards online for ordering stuff online where we can pick up the items or have them delivered. This can be good as it can helps to have lower cost as offline advertising is more expensive than online.

  • http://lexolutionit.com Maneet Puri

    It is probably the most powerful means of advertising. Not only does it make sure that you enjoy a worldwide audience but also it makes for a cost effective method of promoting your business in the current economic turmoil.

  • http://www.gunnarandreassen.com Gunnar Andreassen

    Online ads still strong, safe and increasing. :-)

  • http://www.danlew.com Daniel Lew

    It’s not holding strong at all this last quarter of 2008 – You need to read this blog post to see why – http://www.internetnews.com/webcontent/article.php/3787006/IAB+Online+Ad+Spending+Leveling+Off.htm

  • http://www.spyware-fix.net/antivirus-2009-removal.html Antivirus 2009 Removal

    I think the biggest factor in it’s holding strong is the incredible growth that the market has seen. Many companies have only scratched the tip of the iceberg. We are seeing an allocation in funds from traditional advertising to internet advertising. It is something that is effective and can be properly gauged for effectiveness. I am very confident in the sector going forward.

  • http://www.professional-mover.co.uk Professional-Mover

    I have website and i like to get on top of search engines…. can anywhen can help to promote my website in London England,

    http://www.professional-mover.co.uk

    • http://www.bluerayripper.net Blue Ray Ripper

      profesinal comment./

  • http://www.freddydiaonds.com diamondguy

    Hey Great post Chris. Traditional advertising is almost done…I agree.

    There is a very good argument to be made that shifting ad dollars to digital and away from traditional media will likely decrease ad spend while increasing ROI.

  • http://www.activeimages.co.uk/ Active Images

    Any company worth its salt should be considering upping their spend on online advertising. It’s a tough world out there at the moment and only the most media savvi will survive.

    • http://www.wefight4you.com Riverside CA Attorney

      Times are clearly tough for print advertisers and I have to say as an SEO that I’m pulling in more business because people want to spend less on advertising and receive more. What better way to sell it to them than internet advertising.

  • http://www.blade-cp-pro.com Blade CP Pro

    To some extent, advertising agencies are recession proof.

  • http://www.ripbluray.us/ blu ray ripper

    let me guess you own those sites lol

  • http://www.4udl.com/bluray/ BLU RAY RIPPER

    Thank you so much for this post, it was very insightful!

  • http://onlinestoragedirectory.com/ Online Storage Directory

    Hey Great post Chris. I agree with the point that Traditional advertising is almost done now.. However advertising is not affected by recession thats what I can say.

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