Online Advertising In A Sluggish Economy
So far, online advertising doesn’t seem to have been hit by the economic troubles growing out of the credit crunch and the “recession”, and forecasters are looking at 25%-plus growth this year. I happen to agree with these forecasters and think that the state of online advertising is strong and will grow despite the sluggish economy.
Why?
More and more advertisers are looking for a better return on their investments; many are considering online platforms/networks like MyWebGrocer to get it. The reason online ads are proving so successful include the fact that online ads have a positive ROI, they have a measurable return and for companies like MyWebGrocer, have high conversion rates related to their integrated online shopping platform.
Advertisers are spending a larger slice of their budget online. The current economic crisis is putting pressure on advertisers to save money and find more effective marketing channels. The technologies that enable online advertising provide a much more efficient means than traditional media for doing what advertisers ultimately want: selling to consumers. Today, online ad revenue is but a fraction of what it is offline but as more content becomes digital, coupled by the flight of ads from traditional outlets to cyberspace and as more and more people spend more time online there’s definitely room to grow.
Niche sites and networks and websites that show great value and behavioral and contextual targeting are going to enjoy greater investment and ROI and will be the key elements of success.
It was possible to “blow your ad spend” on a single broadcast TV ad. Now advertisers would much rather get more specific and target specific customers and have maybe less eyeballs but higher quality eyeballs, or less leads and higher quality leads.
Sure the growth may decelerate and granted online advertising would be growing faster in a more robust economy, but I don’t see why it should not continue to have a positive and healthy growth rate.
Charles Rutanhira
Tags: MyWebGrocer, Online Advertising
