Posted on 01/01/2008 3:47:47 PM PST by abb
For the Chinese, starting in early February, this will be the Year of the Rat. But on Madison Avenue, it's more likely to be the year of the cornered rat.
The rise of the Web is forcing ad executives to reinvent how they create ads and even changing the way some ad companies are structured. But until now, few advertisers have spent more than 5% to 10% of their marketing budgets online. With the growth of online video and social networking, ad experts expect that percentage to jump significantly this year.
Softness in the economy will also likely drive more money to the Internet, which can be cheaper than other media and has a reach that is easier to measure, which is attractive to advertisers in slower times. Merrill Lynch predicts that ad spending on the Web will grow 18.4% in the U.S. next year, versus 2.3% growth for ad spending as a whole. Publicis Groupe SA's ZenithOptimedia says it expects the amount spent on Internet advertising to overtake spending on radio in 2008, and spending on magazines in 2010.
Amid this transformation of the ad industry, here are five trends to watch in 2008:
New structure: The rise of the Web has fueled marketers' frustration with the lack of collaboration inside the giant ad holding companies that dominate the industry. Specifically, marketers want more cooperation between the executives who create ads for TV and newspapers and those who craft Web ads or perform less glamorous tasks such as researching consumer behavior.
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(Excerpt) Read more at online.wsj.com ...
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Can’t read the article. Looks good from outside the window.
No doubt about it, we’re seeing a Tipping Point occur.
What I’d like to see is one local site, where I can view all the local adds.
Does anyone actually pay attention to Internet ads?
I have been on the net in one way or another since 1982.
The net really became the net in about 1989-90.
I dont think I have clicked on more than 10 ads on the entire time. If an ad is difficult, I go to something else or block them.
It has never occured to me to purchase anything via internet ads.
I cant see them making money off the net unless they take more control. Because there will always be an elswhere to go on the net.
The writer's strike has forced the major networks to rely on re-runs and other steadily weakening programming. Their audience is shriveling.
When networks don't deliver the audience they've contracted to deliver, they must give the advertisers make-goods. Recall that, starting in early December, CBS began giving advertisers rebates rather than make-goods -- because they had run out of minutes to sell, but were still not delivering the audience guarantees.
Thus, advertiser money is already being forced out of network television. Those ad dollars will be spent. Thus, forward planning will involve a.) lower expenditures on network TV, offset by b.) higher expenditures elsewhere.
So far as network TV is concerned, those dollars are gone. Gone forever...
The trend is our friend.
I/we use internet ads and specialized internet email from selected companies all the time.
I fly fish, actually a specialized version of fly fishing, Spey Fishing. I’m on the email list of a few shops and company’s which specialize/carry the equipment for me.
My oldest son fly fishes the Delta and in Mexico. He, also, duck hunts and bow hunts. He has several companies which email him on a regular basis. He and I both use Cabela’s on a regular basis and to make up our Christmas and Birthday suggested lists.
Our younger son is addicted to bicycle riding, and he is on the mail list of a few specialized providers.
Our DIL is into scrapbooking and other art/crafts, she is on internet email letters and lists for her needs.
Our grand daughter likes certain dolls, so we, her parents and her uncle use the internet to buy dolls and accessories for her.
My wife looks great in Talbot’s and Nordstrom’s Classic clothing. She looks forward to getting email ads from Talbot’s and Nordstrom’s and ordered from both of them yesterday after getting special emailers.
We get specials for cruises from a couple of cruise lines, and used one cruise last year and another coming up soon.
In December I posted about my wife and I trying to shop in local and nearby stores for some Christmas items. We constantly ran into what the stores wanted to sell us, not what we wanted to buy.
Sure we get spam, and those span senders are marked as spam and blocked.
Oh I absolutely agree and purchase from the net. But Ads at websites. Who clicks on them...anyone?
Depends on the website.
If it is one I visit on a regular basis, I will probably click an ad if I’m interested.
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