Wednesday, 3 December 2008

The Other Conversion...

...That of the accelerated transfer to digital from analog advertising.

Advertising overall will decline next year (I know that's this is not new news), this is true for the entire spectrum of advertising; from the cable networks to the New York Times...

An article in The Economist this week suggests that online advertising will escape the slowdown relatively unscathed. Clearly this is not representative of additional advertising dollars but of a reallocation from offline to online.
eMarketer, a market-research firm, predicted that online-advertising spending in America, which makes up about half the global total, will increase by 8.9% in 2009, rather than the 14.5% it had forecast in August. The firm thinks search advertising will grow by 14.9% and rich-media ads by 7.5%, whereas display ads will grow by 6.6%. In short, online advertising will continue to expand in the recession—just not as quickly as previously expected.

The article makes a further point in that online audiences are increasing in those areas in which publishers and advertisers have not successfully developed a business/monetization model: video and social media (see previous post)...

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