Merrill Lynch predicts that internet advertising revenue will surpass both yellow pages and magazine advertising revenue in 2006. Since consumers spend more than a third of their media consumption time online, it’s surprising that it’s taken so long for the lines to cross.
This is just the beginning. Since internet advertising is so much easier to measure, the flight to performance will continue. As more money flows into web advertising, we’ll get better at measuring the offline purchases and branding impact driven by online ads. I believe these improvements will eventually work their way back upstream into offline media. Marketing VPs will soon be held much more accountable for the results of their entire ad budgets – much like search advertisers are now being held accountable.
Math will rock the world.
Related Tags: internet advertising, math, online marketing, sem
Friday, May 12, 2006
Math will rock the world
Posted by John Rodkin at 3:44 AM
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2 comments:
The ultimate in "flight to performance" would be Pay Per Action right? What do you think about the new model Bill Gross is trying to push out? How is it going to affect SEM?
PAY PER ACTION
Pay per action definitely encourages the flight to performance. Setting up a perfect system is really tough for the advertiser, though - which actions should they track, how long should they track them, etc. It's a step in the right direction as long as it can be done with minimal complexity. I think Snap is off to a good start.
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