During economic slowdowns, businesses spend more carefully, yet need to increase revenue to offset a loss of business from it’s existing customer base. So it’s always a contradiction to see companies cut back on marketing when they likely need it the most.
No so for online advertising according to the Rubicon Project. They indicate that more global advertising dollars will actually increase the online advertising market, helping to increase the total amount spent online.
According to their report, millions of dollars are being taken from traditional mediums such as newspapers and television. Why? It’s not the usual easier to track and ROI argument. It’s because their researchers have found that online advertising has better reach globally than TV or newspapers.
Their researchers have found that out-of-country visitors make up about 40% of traffic to U.S. based websites, and more than 50% of traffic to international websites come from the U.S. So much for thinking that the traditional broadcast mediums have more reach.
So with online advertising being lower cost, more effective, easier to buy, and now with better reach, it’s easy to see how online advertising will continue to grow, even in the slower growth economy. And guess what? Afterward, the advertisers will stick with it having tried it.
In other developments, comScore reports that there have been large jumps in traffic to financial websites, due in part to the financial markets. Put that together with what I mentioned above and you know one of the best places to advertise right now during tougher times is online, and on financial websites.
The sky is definitely not falling on online advertising.
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About Dayna Cosgrove
Danya is a creative professional specializing in web design and development, with experience in marketing, advertising, and graphic design.