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PR & SEO Blog from Silicon Alley

More Ad Money Going Online

Thursday, November 15, 2007

Online advertising is a growing business. According to a report by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP, “U.S. Internet advertising revenue rose 25 percent in the third quarter to about $5.2 billion,” signaling a new record for the industry.

Why the jump? Gavin O’Malley from Online Media Daily explored the topic in an article posted on Tuesday. In it, he quoted Nick Brien, worldwide CEO of Universal McCann, as saying, “ ‘If this happens for another year, significant clients will want to walk,” because all of them are “just waiting to increase their online spending to 50% or 60% [of their total budgets]’"

McCann’s clients are not the only companies dissatisfied with traditional avenues for advertising. In fact, many are “discontent due to increasing viewer fragmentation, disruptive technologies, and the resulting decrease in ROI.”

The truth of the matter is that each year, more and more people find themselves increasing the time they spend online. This shift is only natural.

However, marketing execs might soon reach a different frustration with the fact that ads online do not seem to stick in the same way as TV or radio spots. Josh Quittner and Jessi Hempel of Fortune asked readers on Tuesday to name 3 memorable ads they saw online. I couldn’t do it and chances are, neither can you.

Their article went to point out that Google is one of the few companies that has succeeded in creating a thriving ad platform online. Facebook is trying to follow suit, but only time will tell whether their interesting idea of users sharing ads with one another will work.

The bottom line for us is that all things related to marketing (if not all things in general) are expanding their footprint online. Yet, it’s not as simple as regurgitating traditional media campaigns online. The Internet is a different medium, after all, and it demands a little ingenuity.

Labels: advertising, Adwords, new media, Web 2.0