Wednesday, April 29, 2009

Are we really surprised that online is taking a hit?

In late 2008 people were predicting that online would continue to see advertising gains due to its low out-of-pocket and perceived efficiencies. But, recent data shows that online spending does indeed appear to be down in first quarter 2009. ("Online Ad Spending Seen Shrinking", 2009)

It has been my experience that during bad times, marketers retrench, take a conservative approach and fund only those media that have proven their worth.

Some new studies that have just come out indicate that television is more effective then ever in stimulating sales (Neff, 2009) -- the only true measure of success. Online on the other hand has succeeded admirably when it comes to attracting attention, a la the "elf me" promotion, but has not been equally successful in increasing sales growth.

What do you think? Is it a good time to run advertising online, or time to pull back?

(2009). Online Ad Spending Seen Shrinking. Wall Street Journal. Retrived February 25, 2009 from:

Neff, J. (2009). Guess which medium is as effective as ever: TV. Advertising Age. Retrived February 23, 2009 from:

1 comment:

  1. COMMENTS (4)
    Bradley A Giddens:
    we can't really be all too surprised that any marketing programs are taking a step back in today's economic environment. It's a bad idea to retrench too much though, and perhaps a bad play to be completely conservative at the same time. I think that now is a good time to experiment with different mediums, just be sure to tread slowly and not put all your eggs in one basket. I had read in a MediaPost article (BIA: Local Advertising Continues Downward Spiral, 02.27.2009) that local online advertising is expected to grow from 9% spend to close to 25% spend by 2013, while traditional media will see a 26% decrease in spend during that same time. Bear in mind this is local advertising, not online advertising collectively.
    Posted by Bradley A Giddens | March 11, 2009 3:52 PM

    Posted on March 11, 2009 15:52
    Bob Wiesner:
    Growth in online may have been the result of irrational exuberance - or fear of being left behind. In this market, there will be a refocusing on strategies and tactics that are proven to work. It's not about being more conservative, thus the renewed interest in TV. Agencies that are heavy users of TV of doing risky, edgy stuff. It's a matter of investing in vehicles that have reliable metrics that CMO's can trust.
    Posted by Bob Wiesner | March 12, 2009 10:00 AM

    Posted on March 12, 2009 10:00
    Stephan Hespers:
    It is, as said before understandable that companies invest less money in advertising in this economy. None of the less would it be a big mistake to stop advertising. Since sales are down already they would go down even further with no or hardly any ads.
    Regarding the internet ad: I don't find it very surpring that it is not as effective. To raise awareness it's fine. But on the other hand it's just too easy to click the ad away, to not look at it or to just ignore it.
    Posted by Stephan Hespers | March 17, 2009 2:27 PM

    Posted on March 17, 2009 14:27
    Elizabeth Berwitt:
    I am not at all surprised that online advertising has decreased. I think that agencies are aware of the fact that when people go online, they are usually online for a specific reason or purpose. and don't bother to take the time to pay attention to an online ad. If agencies have a low budget, they are surely not going to want to risk their ad being viewed when they have a much higher chance of being viewed in another form of media such as television or in a magazine.
    Posted by Elizabeth Berwitt | March 25, 2009 12:41 PM