“Recession fears impact on online ad spend”
Despite the fact that U.S. economy is gradually falling into recession, market research specialists still estimate that advertisers will spend an increase of 23% over 2007’s spending online, which is equivalent to $25.8 billion. And there are several key factors behind this phenomenon, including better understanding of the audience, more effective ad placements, and easier purchases for advertisers.
Take the four most popular online search engines for example; Google, Yahoo!, MSN and AOL are continuously improving and implementing upon above key factors in order to stay competent, which results in increased per-click prices as well. They are aiming for becoming one-stop shops for advertisers by integrating multiple functions into their ad networks, such as targeting and tracking. This claim is further supported with Google’s recent purchase of DoubleClick, an ad serving and tracking company, and AOL’s purchase of Adtech, a German ad-serving company in 2007.
As online search engines are determined to provide better and more convenient services, while advertisers are always willing to compete for that top slot, it is not hard to imagine why internet ad is such a promising business.
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