Continued Growth For Online Advertising

Online advertising will continue to grow despite economic woes according to the latest analysis from eMarketer.

The majority of analyst firms expect to see spending growth for online advertising to continue to show double-digit increases in 2008 and 2009.

Globally, 91 percent of marketers are using online advertising, according to a McKinsey & Co survey of 340 senior marketing executives. Over half (55%) said they plan on cutting spending on traditional media in order to focus on Internet advertising.

A Forrester Research survey found that 25 percent of marketers would increase spending on online advertising due to an economic recession. In addition an Epsilon CMO survey from September revealed that 63 percent of marketers planned to increase their Internet advertising spending in 2008.

Some of the reasons online advertising is attractive to marketers is the ability to measure their campaigns and target their message more than other forms of media.

Online advertising also is more engaging to consumers and more young people are spending more time online per week they are watching television.

The Internet is the only channel that allows marketers to connect with consumers during the entire shopping process, from the research phase to the point of sale and post feedback.

There are 8 Comments. Add Yours.

Shriya Ssaran Resources
October 27, 2008 at 12:39 pm

The recession has affected the online advertisement revenue. From my personal experience, even though the number of page impressions has increased, the revenue is reduced by about 20%. Is anybody experience the same problem?
- KVSamy
  October 30, 2008 at 11:55 pm
  
  My site CTR is dropped about 75% and ECPM is reduced to 20% when comparing with Jan2008, but still but my revenue is icreased due to increase in page impression
portable storage
October 27, 2008 at 1:06 pm

I have to admit I was affraid about losing my job when the economy started to take a slump, but now I have nothing to worry about. So far I’ve only seen new clients come in and slight gains in ad spend but things are looking up.
Johnny
October 27, 2008 at 11:47 pm

Shriya Ssaran Resouces…..your absolutely correct.

Google is stiffing their publishing partners…..they are putting the squeeze on Adsense and domain parking partners.

It’s widely known and accepted they are "taking back" from their partners …….just read the forums to see the rage/sadness/sickness some are feeling. Some smaller publishers have been reduced to near nothing in payouts and can hardly pay their bills now.

You can also look at the Google quarterly reports to see what they are paying out as a total percentage….it’s called the TAC (Traffic Acquisition Costs).

Payouts are going down and their earnings are going up. Who is getting fleeced do you think? You and I.
Guest
October 28, 2008 at 5:25 am

People think online advertising is a mature industry but it’s not. It’s still quite new and hence still growing.
- lening afsluiten
  October 29, 2008 at 6:33 pm
  
  But it rocks!
Diamonds
October 28, 2008 at 4:35 pm

But this is only the start of the recession. People are desperate and are spending their last few bucks for ads that has little or no return. It will remain to be seen…
Venkat
October 29, 2008 at 3:32 am

For online publishers CPC is not working out effectively. Because the Online adv.-copy & creative is also important.