Monday, July 17, 2006
Old Media Deathwatch: Online/"Alternative" Spending Way Up
According to the "Alternative Advertising & Marketing Outlook 2006" study published by PQ Media:
Spending on alternative media strategies surged 16.4% in the first half of 2006 to an estimated $53.37 billion compared with the same period of 2005. Growth was driven by double-digit gains in most of the 23 subsegments of alternative media.
And right on the heels of this study, another study by Deutsche Bank and Media Post found that online media spending rose nearly 14% in the first quarter of 2006. Spending seems to be concentrated with mainly large players, with the major portals and search engines getting the bulk of the cash:
Large portals proved more popular with media buyers in the second quarter than the first, with executives allocating 32 percent of their online budgets to Yahoo (15 percent), MSN (10 percent), and AOL (7 percent); in the first quarter, portals garnered just 22 percent of budget. Niche sites like iVillage, Marketwatch, and CNET captured 31 percent--also up from the first quarter's 23 percent. Ad networks such as Advertising.com and ValueClick drew 11 percent of display spending. Google dominated the paid search market, garnering 65 percent of cost-per-click spending; Yahoo accounted for 25 percent, and MSN took in 8 percent.
Of course, all of this makes total sense to us. Why would anyone throw their money away on unaccountable old media advertising when they can get directly measurable results from online ads? John Wanamaker's (that's his picture next to this post, by the way) old saw about how "half the money I spend on advertising is wasted...I just don't know which half" used to be true. Now it's not. In fact, the new accountibility available from online advertising has lead the Economist (and others) to label the previous century "The Wanamaker Era." Whether the new era gets labeled as "The Google Era" or "The Age of Accountibility" remains to be seen, but it looks like we're definitely headed in a new direction.
Labels: Old Media Deathwatch
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posted by Sean Carton @ 9:45 AM
posted by Sean Carton @ 9:45 AM
