The Future of Ad Spending During Financial Crisis – A MUST KNOW!

If you’re new to the Online and New Media space, then you need to understand how our current financial situation impacts our space. I myself see the future Ad Spending projections change on a quarterly basis, and with the current financial status of our economy, I can only expect to see these #’s change more often.

EMarketer.com US Online Advertising Revenues

eMarketer.com - US Online Advertising Revenues

If you are worried about the effects of the current financial crisis on the US Online Ad Revenues, then take a look at these stats. For newbies, I really enjoy eMarketer.com graphs and information. They really help visually bring you up to speed while provide articles that are very informative and to the point. Novices and advanced alike, these graphs are worth it. (NOTE: You need to sign for their Free newsletter, otherwise all their info is archived for paid users after 30 days of publishing any article.)

Now, the 2 big collectors of stats in our space come from these top 2 sources: Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC). [If you look at a lot of my Q1 Reports Article, that info was IAB and PWC based.]

I found it interesting how the the above graph shows the increase and decrease %’s of each sector.  “The negative growth for classifieds closely reflects economic weakness,” said David Hallerman, senior analyst at eMarketer. “Whether used on eBay to sell products, on job sites by employers, or for real-estate sales, classified ad buys tend to be short-term purchases with short-term objectives. In contrast, most display-related ads, such as banners or video, are contracted ahead of time. For that reason, they are less of a mirror of the current state of online advertising than classifieds,” Mr. Hallerman continued. I really enjoy how eMarketer breaks down the stats so you don’t have to jump to your own conclusions.

In a recent MediaPost article, “fears for the future will cause consumers to cut their spending, while companies carefully inspect their budgets to find cost savings.” In the October Issue of Inc. Magazine, there was an article Strategies for Tough Times, What the smarters business owners are doing to cut costs, find funds, and manage staff in a slow economy. They brought up 5 diverent ways to save money (layoffs not included). You should definitely check it out. They suggested trying “Do-It-Yourself Marketing” and potentially save your company up to $66,000. (WARNING: It promotes NOT hiring a marketing consultant!)

Jack Myers, (This “Media Futurist” is editor and publisher of several newsletters and websites targeting media, advertising and entertainment professionals) said it best “The media marketplace is transitioning from one in which demand has exceeded supply (even as supply has grown exponentially)…to a marketplace in which the availability of supply is outpacing demand.”

eMarketer - Online Advertising Spending

eMarketer - Online Advertising Spending

Here’s a projection based on IAB and PWC research that will give you a sense of where our space is predictedon heading in the next 4 years. Remember, this could change! But it is necessary you know today’s prediction of tomorrow. It’s part of your job as an internet marketing “ambassador”.

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Posted under Online Marketing

This post was written by Joshua Russak on October 11, 2008

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