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Tuesday, August 07, 2007

Internet Advertising To Be King in 2011

Online advertising will surpass newspaper advertising in four years according to a study released by Veronis Suhler Stevenson and quoted extensively by MediaPost.

While strong growth rates are needed for online ads to take the top spot, my glass-half empty view is, why will it take that long? Newspapers are shrinking faster than Lindsay Lohan's career prospects, and Internet access is becoming cheaper and more available for all.

However, wireless access needs to be more readily available and PCs need to be cheaper for the widest possible audience to access online ads, which has been slowing the takeover of newspapers. Plus, despite 15 years of web advertising, some ad execs are still clinging to belief that print is the best way to reach people, so a change in behavior and embracing of metrics that show the actual interaction with ads (instead of relying on "reach" and sampling data) has occurred slower than it should.

Video advertising wasn't mentioned in the article. If media companies shift quickly to ad-driven TV content delivered online, newspapers could lose the top spot earlier.

The good news for "old media" is that sites linked to print and TV sites are expected to grow faster than online-only publishers. These publishers should take full advantage of RSS, blog and podcast advertising, which is projected to grow an astonishing 70 percent per year, according to the survey.

Posted By John Gartner at 10:23 AM
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