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June 13, 2006

Old media advertisers ready to spend billions more on the web

by Andrew

I don’t like quoting big chunks of other people’s writing, but this is too good to pass up:

“Of 133 advertisers who control over $20 billion in advertising, 78 percent feel TV advertising’s potency has declined since 2004. When DVR penetration gets above 30 million households, 24 percent will cut their TV ad budgets at least 25 percent. They’ll reallocate that money to online and other channels. More than three-quarters will invest more in Web advertising; almost 70 percent will spend on SEM

Yet another positive signal for publishers and domain investors..

In the article Bryan Eisenberg goes on to ask if your company could absorb an increase in ad spending by 4x. Where is that money going to go? Yes, to the search engines, but also to publishers. With Yahoo and now MSN jumping into the contextual ad network game that means there is going to be a big squeeze on how much money Google can get away with pocketing.

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