If you were in media sales for print media,television, or radio 2009 was a miserable year. What would it have looked like if you could have predicted it? It might have looked like the following blog post. Based on events that had just happened in the financial industry my June 22, 2007 blog post, describes the "inevitable correction" that ad based media will be going through. It looks like the end of 2009 to me!
Here's the post:
A recent "follow the money" analysis of the advertising industry by Dow Jones' "MarketWatch" should serve as a shrill wake up call to anyone in the ad sales business who thinks that online products will not be the biggest part of their portfolio in the future. I also see this article as a great sales tool to show any advertiser who feels the same.
The article looks at the recent spate of acquisitions among online ad giants with eye popping billion (with a "B") dollar signs; Google buys DoubleClick for $3.1 billion, Microsoft buys aQuantive--for $6 billion, etc. MarketWatch concludes, they make perfect sense because of the "inevitable correction" coming to the ad industry as a whole.
MarketWatch lays out the case:
"Last year, U.S. consumers spent nearly a third of their total media-consumption time engaged with online or interactive media, a dramatic increase from just two or three years ago. At the same time, Fortune 500 companies allocated only 6 percent of their marketing budgets to online media in 2006, up from 5 percent in 2005...they're spending ever more money where, increasingly, consumers aren't."
"The inevitable correction is upon us. That's why online adverting in the U.S. market is growing seven times faster than other advertising media: Online was up 35% year over year, while the overall ad market grew only 4 percent. Whether dollar allocation percentages ever match consumer usage numbers is academic; it's clear that the gap between consumer behavior and corporate marketing budgets must close."
Read the full article on MarketWatch