
Online Advertising expected to Surpass traditional media in 2012
Businesses in the United States are expected to spend more than ever before on online advertising in 2012 despite the downturn in the economy, estimates eMarketer.com.
They estimate a 20% growth this year (reaching $40 billion) with double-digit growth continuing through 2014. By 2016 advertisers are expected to spend a whopping $62 billion online! Cha-ching!
So how does this compare to traditional media such as newspapers and magazines? As their revenues are chipped away once again, eMarketer.com suggests that US online spending will be greater than the total amount spent on print magazines and newspapers for the first time at $39.5 billion. One might suggest that Canadian markets will be in a similar boat. Television is not facing as much pressure, but online advertising is still expected to be a significant rival this year. Visit our friends at businessinsider.com here to find out more about what television advertisers are expected to face.
The kernel of this issue appears to be one of value. Businesses are obviously seeing more value in advertising to a wide audience at pennies per view instead of an aging audience at hundreds of dollars per reader. A good way to measure this is to ask yourself “what was the last ad I read?” If you’re like most of us, we can’t answer that question with a great measure of confidence.
Of course, traditional media have tried to be more creative by offering online versions of their paper-based publication. However, one would think that this kind of pressure to survive would engage them to get more competitive. The reality is that for the most part, newspapers and magazines continue to change enormous fees for a decreasing number of readers, putting even the possibility of an advertising campaign out of reach for most small businesses. For example, a recent client of ours purchased an ad in a national newspaper that measured about 6” wide by 10” high. Given the national distribution, one might suspect that it would cost a little more than your neighborhood publication, but with a price tag of $50,000+ no wonder things are changing. For the small business owner, or new start up, online advertising is the only really affordable medium. For more on this topic, visit eMarketer here.
Has your business thought of doing more advertising online? Perhaps we can help. Visit us at www.esitecreations.ca or contact us at sales@esitecreations.ca to talk about it.


