My Predictions for Online Advertising During the Recession
Lately, we’ve seen a lot of doom & gloom reports in regards to what will happen with online advertising during the recession we’re already in. We’re even seeing some of the more popular online media companies slash their workforces in anticipation that ad spending on the Internet will drastically decline in the near future. While I certainly think companies will be forced to watch their spending, especially in regards to advertising, it’s my prediction that more money will be coming to the Internet and here is why.
1) Save gas - More and more people will be trying to save money in every way possible. This will include saving gas by making more purchases online instead of driving around town looking for the best deals.
2) Smarter purchasing - As people start to really watch their purchasing decisions they will be comparison shopping online and doing more research on the web before they make purchases. This will also lead to more online purchases as they realize these are where the best deals are.
3) More time - Again, chalk this up under the people saving more money category. As people begin to watch their spending habits, it will mean less time & money spent doing things like going out to eat, going to movies, traveling, etc etc. These will give people more free time at home, which in turn will mean more time spent online.
4) Measureable - Companies that are cutting back on ad spending will only put their money in what they absolutely know provides results. This gives online advertising a big advantage over pretty much every other form of advertising as it’s all trackable down to the click/penny.
While these are general statements, there will certainly be some sectors that spending will drastically decrease online. I think that will be luxury goods, travel, automotive, and some financial sectors.
Although I feel that advertisers will cut back on banner ads and other rich media, I think that more advertisers will be moving to affiliate type CPA stuff and CPC, as well as other Search Marketing efforts. So, that means CPM advertising may slown down but overall I still think the state of Internet Advertising is healthy.
I’m curious, what are your thoughts?
Update: I’m not the only one who thinks advertising online will remain healthy.
Cameron Olthuis is the Founder of