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Brian Quinton comments in his blog on the state of the US web spend, identifying decreases in spending on display advertising. It seems that in this economy the fixed cost per view of an advertisment displayed on a users browser is a turn off compared to the delivery of clicks on search term hits – the later being much more results focussed.
The principle that display ads are less cost effective than search is largely down to the targeting. Certainly for those retailing products on the Internet, “search” is the a great way of driving traffic, but better targeting of audiences for advertisments would also yield a more performance driven model.
On line advertising targeting is under a lot of pressure however, given the EU action over Phorm and the general distrust of the use of private information across Facebook and other sites – so perhaps this route will remain more untargeted as a result.
Here’s an extract from the blog post,follow the link to see the whole post:
It’s become almost a truism that marketers are running to measurable media in this tough economy, to ensure that their ad spending is working to full potential. And most observers say that means a strong shift in favor of online channels.
But that trend doesn’t mean online ad spending will thrive in this period of slashed overall marketing budgets. And sure enough, a new forecast from media analysts Screen Digest revises the agency’s 2009 predictions for U.S. online ad spending downward. The forecast now says that spending on Web marketing in America will decline by almost 5% this year, mostly because of cutbacks related to the down economy.
via Online Ads Not So Bulletproof After All: Forecast | The Big Fat Marketing Blog.
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