Online Advertising Failed the Recession Test… Why?
July 27, 2009 at 11:56 am Arun Krishnan Leave a comment
BNET’s Jim Edwards posed an important question over the weekend: why is online media revenue down? The easy answer is that every sector is hit during a recession like this one. However, when you think about it more carefully, it doesn’t make a whole lot of sense that spending was cut evenly across media. According to Edwards, it seems right that budgets towards expensive, unmeasurable media should be reduced, especially in tough times – but spending on cheap, easy, measurable online media should be preserved or increased. Is it that online media really isn’t that much more effective or efficient than traditional media, or is it that cutting spend across the board was easier for media teams than taking a detailed look at what works and what doesn’t?
Jim Edwards asked our CEO, Zephrin, for his thoughts. Read the full story on BNET.
One thing to mention – while overall CPMs did fall, causing aggregate numbers to look down, not all online adverting formats were hit hard by the recession. Paid search actually grew 3% and ROI focused companies like Pontiflex have seen enormous growth from marketers looking for more measurable solutions to connect their brands with consumers online.
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