Internet advertising falls 5.3 percent

[DN BROKER]

Internet advertising totaled $10.9 billion for the first half of 2009, down 5.3 percent from $11.5 billion for the same period last year, according to a report by the Interactive Advertising Bureau and PricewaterhouseCoopers LLP.

http://news.google.com/news/url?sa=...com/kansascity/stories/2009/10/05/daily9.html

 

[raoul]

I think thats still a pretty bad estimation, I think it dropped steeper. Internet advertising does not work for most of the businesses

 

[chillking]

Maybe the ppc fraud has messed things up.

 

[Gerry]

Folks, rest assured...

print advertising dropped steeper.

A 5.3% decrease on the internet is nothing compared to what other mediums have experienced.

A 5.3% decrease is very good considering the difference a year has made on not only internet based businesses but also brick-and-mortar stores.

Internet advertising does not work for most of the businesses

Raoul, what do you base that statement on?

 

[Bill Roy]

A report here (UK) last week revealed that for the first time ever internet advertising spend outstripped television advertising spend in the first six months of this year. It is thought this is the first time in any major country this has happened.

 

[raoul]

Folks, rest assured...

print advertising dropped steeper.

A 5.3% decrease on the internet is nothing compared to what other mediums have experienced.

A 5.3% decrease is very good considering the difference a year has made on not only internet based businesses but also brick-and-mortar stores.

Raoul, what do you base that statement on?

On experience.

the best way, to get customers, is how it was since man kind came to earth, mouth to mouth. This also works this way in the internet. When I read on some specialised forum, " product bla bla bla solved my problem" is better than seeing a (google) ad.

I think its (and always was) a problem for advertisers to measure ad profitabillity, there are tools like omniture, that cost sh*tloads to give you some estimations on ad profits.

Dont get me wrong, I think it could be good for some businisses, to do on brand advertising (brand awarenes) , but I think product advertising via PPC is sooo 1999. Besides the many fraude, most poeple got blind for it. In this steep recession companies will reconsider their advertising strategies, or simply have no budget, and can come to the conclustion their many many spend dollars all gone up in smoke, instead of revenue.

anyway its an opinion, I am not a marketeer.

ps

traditional media do less, but this is already for years the tendence, in general the traditional media just missed out the internet hype. They were seeing the internet as a hobby variant on their newspapers. They thought internet could not give quality news. I think most users simply not want yesterdays news on tomorrows newspaper.

 

[Gerry]

on experience. the best way, to get customers, is how it was since man kind came to earth, mouth to mouth. This also works this way in the internet. When I read on some specialised forum, " product bla bla bla solved my problem" is better than seeing a (google) ad.

I think its (and always was) a problem for advertisers to measure ad profitabillity, there are tools like omniture, that cost sh*tloads to give you some estimations on ad profits.

Dont get me wrong, I think it could be good for some businisses, to do on brand advertising (brand awarenes) , but I think product advertising via PPC is sooo 1999. Besides the many fraude, most poeple got blind for it. In this steep recession companies will reconsider their advertising strategies, or simply have no budget, and can come to the conclustion their many many spend dollars all gone up in smoke, instead of revenue.

anyway its an opinion, I am not a marketeer.

I do understand your points. Very well stated.

But as a marketer, it is important to measure the success of all programs and money spent.

In a real business, one can see the measure of success (or failure) from shifting dollars away from traditional mediums to the 5th medium (the internet - with the remaining four being print, radio, television, outdoor).

The 6th media will be taking a big chunk of money away from those previously stated - mobile.

In the business of domaining, sure - we measure success in sales or traffic.

But domaining is hardly a measure of online advertising spending. Rest assured that money once allocated for radio, newpapers, and television are now being directed to internet based advertising.

I honestly don't recall the past quarter or annual figures in total (they would be out there for the searching) but if online ad revenue fell by 5.3% then there were a lot of big name hitters leaving the market and industry. One year ago most of the US business were trying to fight off a complete and total collapse of the financial industry, scandals were rampant, and many big name companies simply were gone. Those that were left were wondering how to save their own butts or gauging how much time they had left. Plus, many of those with their hands out asking for a hand out (GM, AIG, Citi, BofA, Chrysler, and so on) thought that advertising would "look bad" in the midst of all the calamity.

I was just curious if there was something different going on in the EU market that I may have missed.

 

[DomainFatigue]

Internet advertising totaled $10.9 billion for the first half of 2009, down 5.3 percent from $11.5 billion for the same period last year, according to a report by the Interactive Advertising Bureau and PricewaterhouseCoopers LLP.

http://news.google.com/news/url?sa=...com/kansascity/stories/2009/10/05/daily9.html

I'm not surprised at all. Starting about two months ago I have been watching my AdSense revenue drop to about half of where it was. But I look at this as a time to continue developing and working on SEO - while other entities fail. Maybe, just maybe, when the economy improves (who knows when) I will be well positioned to make some real profits with my sites...

 

[Gerry]

A report here (UK) last week revealed that for the first time ever internet advertising spend outstripped television advertising spend in the first six months of this year. It is thought this is the first time in any major country this has happened.

It is only a matter of time before you see this en masse, in totality.

Television revenue is in deep and steep decline. As mentioned, it is hard to thing about spending money on advertising when you are not sure your doors will be locked for good the next day.

Internet and mobile advertising represents a new medium that can be easily accomplished small and in-house. That is why you will be seeing the decline of many multinational and big names in advertising, as in the advertising industry on Madison Avenue. Their whole premise and purpose of being is to convince you that you can not make it without their help and guidance.

Bunk.

Today's start ups are very tech savvy and oriented kids. They know there are benefits in hiring someone good in web design, development, and programming. Those benefits are being able to control your own destiny at a fraction of the cost it would take to pay an agency on Madison Avenue. If you are inhouse, you are in control.

If you need advice, you consult a consultant or just post on Twitter or Facebook or something else that is media rich. Plus, your audience for television has shrunk dramatically. And anyone in the ad or television business who does not admit this is only prolonging the inevitable.

The down side of this money drain from traditional television is an increase in fees to help make up the cost. I look for football and other popular sports that are broadcast on regular channels or cable to become a PayPerView event. Imagine having to pay to watch the NFL playoffs, the world Series, or the Quarter Finals of the World Cup.

Media moguls are in trouble and they know it. That is why you are looking at many media moguls looking to get into internet connectivity business or telecomms. Those that were early into the game (Rupert Murdoch anyone?) will benefit the most. Just as in stocks or even a domain portfolio, the key to success in the media is to diversify, diversify, diversify.

I'm not surprised at all. Starting about two months ago I have been watching my AdSense revenue drop to about half of where it was. But I look at this as a time to continue developing and working on SEO - while other entities fail. Maybe, just maybe, when the economy improves (who knows when) I will be well positioned to make some real profits with my sites...

I think it may be a little near sighted to blame a drop in Adsense on a drop in online advertising revenue. That is the easy way out (or the easy explanation).

But lord knows there is nothing easy about Google.

We are looking at a years difference in spending. How many times has google changed their algorithms for adsense in that year? How have they changed the way they rank sites?

Plus, you mentioned it - SEO. You have to tweak to keep up with the changes google makes to its own system.

Besides, two months ago I had the best month ever with Adsense.

Just like people trying to connect the dots in drops in PPC with this. September was my best month on Sedo in over a year.

Again, it depends on the product. In our case, domains. And the keywords used.

 

[raoul]

In the business of domaining, sure - we measure success in sales or traffic.

I am no domainer, I have some quality domains, but NEVER sold 1 in my life.

Obtaining a nice, generic keyword in my "industry", would be typical "showing off dick"