Making an income on the internet - usually this is about shared revenue from companies like Google and others. For most of us publishers it's important to see how this market is developing.
Up or down?
Net spending on advertising is subject to the economic 'weather'. Between 1990 en 2009 these spending's took a sharp downturn for spending's on magazines and newspapers. Spending in television ads rose slightly and spending's in radio ads almost doubled. From 2006 there was a nice sharp increase in spending on advertising online. There are of course some side-notes: Some of the magazines also have websites nowadays.
The media-mix and the Internet
The advertisers themselves also changed. They no longer chose for just one medium but increasingly choose for 'cross media' campaigns. The internet holds its own place in this mix of media. Actually spending's in the internet having dramatically increased because more and more people spend more time online. The widespread adaptation of broadband internet is one of the largest contributing factors. Not that long ago people were still being changes by the minute for 'online time'. According to the same research the internet actually has a great synergy with the other media-types because the internet used to support offline campaigns and vice-versa.
Differences in the online world
There are large differences between the internet publishers. There are the traditional publishers-turned-internet-publishers such a newspapers and magazines but there are also the many smaller website owners such as forums and small communities around a certain subject.
One-way to two-way
Another interesting conclusion SMA did was that there seemed to be a shift from one-way advertising to two-way advertising in the period from 2008 to 2010. This is, not in the least, because of the rise of social media where there is much more opportunity for discussion, communication and interaction as opposed to the 'regular' ad in the newspaper.
Bull-Bear en mediaspending
Some would say this is obvious but I though we I should mention nonetheless. Spending's are obviously up on bull markets and down in economic slumps.
Spending's on the Internet
Gross spending's on the internet have roughly been recorded since 2004 and have had their own ups and downs. However, contrary to other media, the internet charges on a pay-per-click basis or CMP basis. And usually publishers such as affiliates only get paid when a sale is made or a lead has been received.
Internet ads per kind
The use of banners is slightly going on the decline mostly because people are generally annoyed by the use of large flashy banners. Most advertisers say, according to Seo Marketing Amsterdam, that they plan on spending less on banner development. There is one exception however: banners for competition and free games. People generally still click on these.
Search: on the up
Search engines are the most important source of income for online advertisers. Advertisers like to be there when people search for something and not when people are not looking for anything. Especially pay-per-lead and pay-per-click models are expected to increase in volume because this matches the long-held wish by most advertisers for a better system.
Social media
Where in 2009 there were actually still people questioning the use of social media, the usage numbers speak for themselves. Social media spending will increase for at least a few years to come because advertisers will simply follow the people.
The future of making money by publishers from advertisers
On one side advertisers expect that internet spending will increase. Mostly because of the social and moral pressure to have a presence online. But that does not automatically imply that publishers will benefit from that. Some advertisers have argued that they should build their own websites and generate income from there without spending commissions for third-party publishers.
Key takeaway's
- Internet spending is up, at least largest then the market-average.
- Traditional online advertising through banners in on the decline.
- Social media and inherent interactivity is expected to increase significantly
- There is a large blurring media going on. For example, a viewer might watch his or her favorite series on TV but also on Hulu.
- Platforms and media-mixes are becoming much more important
- Publishers should keep up the quality of their work because there is such a large increase in information-offerings online that it is harder for the consumer to differentiate.
About the Author:
Written by Joeke Hendriks. She hold a bachelors degree in Marketing and currently is a freelance writer for SEO Marketing Amsterdam.
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