PaidContent.org has the skinny on anticipated increases in online advertising spend in 2008 and projected out through 2012. Things continue to look promising for the channel - and the big ad networks and publishers controlling an ever-increasing share of the quality inventory. Here's the graphic, which tells the basic tale:
![Online-advertising-research-chart-2008]( "Online-advertising-research-chart-2008")
Still, though, we can't help thinking: Why is online growing to only ~10% of total advertising spend in the next few years, while consumers worldwide are already spending over 30% of their discretionary time online (and ever more so as time passes)?
Perhaps it's because the cost of a decent brand impression online is still so much lower than the cost of a quality impression offline... whether it be in radio, print, news, TV, billboard, or whatever. But that disparity won't last for long. As the consumer's time becomes more concentrated online, and brand marketing targeting methods (and tools / software) become more advanced and effective, the "cost per quality impression" online is going to keep rising and rising while the "cost per quality impression" offline will fall until the main cost differences become the fixed and variable costs of actually placing the ad and achieving the reach through the channel out to the target consumer.
And we all know which channel has got (by far) the lowest fixed and variable cost structure for advertising media placement, now don't we?
Lookout TV (still the largest brand advertising Hoover of all the channels, at least in the US): The threat to your ad inventory value from cable, satellite, and Tivo/DVR's is going to pale in comparison to the simple dynamic of "falling demand" for your content as people shift from their couches to sitting in front of their monitors in the evenings (and mornings, and on the weekends, and all night, ...).
When the brand marketing dollars really start to roll in to the 'Net, to complement the heavily-weighted direct response and "ROI-driven" online ad spend that's already growing at a 20%+ annual clip, lookout... that's when things really start to get exciting for the big interactive marketing agencies (and "interesting", in proverbial parlance, for the other big agencies which still rely primarily on big TV and print media buys for their revenues).
In any case, here's the jump to the original article with all the research projections for those of you still reading...
Still, though, we can't help thinking: Why is online growing to only ~10% of total advertising spend in the next few years, while consumers worldwide are already spending over 30% of their discretionary time online (and ever more so as time passes)?
Perhaps it's because the cost of a decent brand impression online is still so much lower than the cost of a quality impression offline... whether it be in radio, print, news, TV, billboard, or whatever. But that disparity won't last for long. As the consumer's time becomes more concentrated online, and brand marketing targeting methods (and tools / software) become more advanced and effective, the "cost per quality impression" online is going to keep rising and rising while the "cost per quality impression" offline will fall until the main cost differences become the fixed and variable costs of actually placing the ad and achieving the reach through the channel out to the target consumer.
And we all know which channel has got (by far) the lowest fixed and variable cost structure for advertising media placement, now don't we?
Lookout TV (still the largest brand advertising Hoover of all the channels, at least in the US): The threat to your ad inventory value from cable, satellite, and Tivo/DVR's is going to pale in comparison to the simple dynamic of "falling demand" for your content as people shift from their couches to sitting in front of their monitors in the evenings (and mornings, and on the weekends, and all night, ...).
When the brand marketing dollars really start to roll in to the 'Net, to complement the heavily-weighted direct response and "ROI-driven" online ad spend that's already growing at a 20%+ annual clip, lookout... that's when things really start to get exciting for the big interactive marketing agencies (and "interesting", in proverbial parlance, for the other big agencies which still rely primarily on big TV and print media buys for their revenues).
In any case, here's the jump to the original article with all the research projections for those of you still reading...