Ad Budgets Continue to Move Online
August 19th, 2007 by Jim
Almost every day, you can find predictions of how marketing will continue to move from more traditional media (ie: newspapers, magazine, TV, radio) so it’s even more interesting when these predictions start panning out as predicted.
Henry Blodget at the Silicon Alley Insider, had a very interesting observation this week about how ad dollars are moving away from traditional media to online media. He found that in the past financial quarter, revenues at the big 4 online media companies (Google, Yahoo, AOL, and MSN) grew by $1.3 billion. Meantime, advertising revenue at 15 big television, newspaper, magazine, radio, and outdoor companies (Time Warner, Viacom, CBS, etc.) shrank by $280 million.
“Ad Dollars Go Where the Eyeballs Are Going”
“Ad Dollars Go Where the Eyeballs Are Going” is an old advertising adage. What this means is that the eyeballs have already moved away from traditional media to online media and the ad dollars are now following them
We would consider the above numbers to be more than just ”back of the napkin” calculations and not statistical data. However, it is showing that the predicted trends are starting to bear out. Online advertising has only begun to take away advertising market share from the old media and will continue to do so at a similar, if not greater pace.
If you are relying on traditional media, you will have less and less eyeballs looking at your advertising efforts. You need to establish your presence online and focus ad budgets there to make sure that your future clients will find you.
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