There Is No Recession Online

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April 25, 2008 by James
Filed under: Classical Marketing, Internet Marketing 

Though the North American economic downturn is hurting many traditional magazine, newspaper and television advertising providers, the digital advertising sector is rallying because companies are shifting their marketing budgets to the web.

Big advertisers are getting ‘web savvy’ and advertising online. General Motors recently announced it will spend $1.5 billion–half its annual advertising budget–online. Kimberly-Clark, home of Kleenex and Huggies brands, increased its Internet allocation to 26% from 10% of its marketing budget. And McDonald’s recently inked a digital deal reportedly worth $10 million.

All this spending proves the online advertising trend is real, and Google (the world’s biggest Internet advertising company) recently reported first-quarter earnings that exceeded all the Wall Street estimates, quelling concerns about its growth.

The main reason digital advertising does well is because it’s easier to measure the success of your web ads versus your TV or print ads. On the Web, you can count the number of times consumers look at or click on your ads and the dynamics of the web also let you adjust your adverts rapidly to maximize change.

Bottom line, web spending is growing at a much faster rate than spending on traditional media and there’s no immediate signs of this stopping any time soon.

*Inspired by recent Forbes article.

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