Web Marketing Erodes Traditional Media Advertising

October 2, 2008

Economically, it’s been a tough year, but the shift of business advertising revenue from traditional media to the web has created the kind of growth I’d like to see in my IRA mutual funds.

Here’s the latest from the Interactive Advertising Bureau, which monitors web ad spending.

“Internet Advertising Revenues Up 18.2% for Q1 ‘08, Second Highest Quarter Ever”

Online Advertising Remains Vibrant Despite Tough Economic Times

“We continue to experience significant growth and vitality in interactive marketing, media and advertising,” said Randall Rothenberg, president and CEO of the IAB. “We expect growth to continue, as consumers spend more and more time online, and marketers find more - and more innovative - ways to reach them through digital media.”

“The fundamentals of interactive advertising spend continues to be positive and I would expect to see continued growth in the future.” said David Silverman, partner, Assurance, PricewaterhouseCoopers “The cyclical fourth quarter to first quarter drop in traditional media advertising spend, combined with an overall economic slowdown, resulted in a not so unexpected first quarter slowdown in the growth of online advertising.”

Source: PwC/IAB Internet Advertising Revenue Report (www.iab.net)

So should business owners drop their marketing plan and run to the web? Not necessarily. You need to make sure that your money is spent effectively, and you don’t get caught up in the hype. If you’re a business owner, you may have noticed a plethora of “Local Online Directories” all vying for your marketing dollar.

Sure, some are legitimate - but are they truly effective? How do you know? Is there corporate headquarters located in Podunk, NY?

The old adage is ” I know I’m wasting 50% of my marketing budget - I just don’t know which half.” With traditional ads, that can be true. Internet advertising is measurable and tracked, making it easier to determine which campaign is effective.

People often tell me “I’m thinking of placing an ad with XYZ company. They’ll put my ad on the web and guarantee I’m Number One in the listing”, or “They have a special agreement with Google”. I tell them it’s a crock. Common sense will often bring clarity to a convincing sales pitch. I ask “They’ll make you number one, eh? Tell me, if you were in the market for your service/product; would you go to XYZ.com to find it in Murfreesboro? No? Well, why would anyone else?”.

The “Special agreement” with Google ploy is a falsehood. Google clearly states that they have no special agreements with anyone, and that anyone claiming as much is committing fraud.

If you’re going to advertise on the web, it makes sense to buy ads where your potential customers are going to be. Also, avoid an advertiser that shows up on Google’s page 36.

Ken Ivey is a veteran technology addict, consultant, author, and President of MidTN Technology, a marketing and web design firm. For more information, call 615-278-9324 or visit www.kenivey.com

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