Online Ad Prices Continue To Fall
The Internet advertising market, like all markets, responds to changes in supply and demand.
In the current recession, demand for advertising is likely to decrease. At the same time, supply of online inventory, page views, is continuing to increase.
Social networks and other social media sites in particular are creating masses of new inventory. As a result, the price of online advertising will continue to fall in 2009.
Targeting may mitigate some of this fall. Better targeting is steadily improving the effectiveness of direct response advertising (the equivalent of TV infomercials).
This targeting takes many forms, but all have demonstrated an ability to lift conversion rates over “run of network” advertising.
As targeting technology improves, and as the data that publishers and networks collect about users increases in quantity and quality, we will see a better ability to match the right ad to the right person, and charge more for that ad.
Photo by ilco.
Jaclyn on January 30th, 2009 5:02 pm
It is no surprise to me that advertising even on the internet is expected to drop. But i do agree that there should be better way’s of advertising on the internet for each individual business. it seems like a lot of the ad’s i see are pretty much the same from company to company just with a different picture or slight differences in wording.
cassy on February 8th, 2009 5:18 pm
As what we know and see inside the market place or even in the department store almost all of the items out there is decreasing. And the internet advertising we expected that these will be the one of those decreasing also but the company will not focuse on that matter as what we want they prove that thier company doing thier best to there clients.
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