Wednesday, December 19, 2012

Digital Pennies Growing Nicely With Online Ads

Compared to television, online ad spending is still small, but one thing is clear, online ad spending is growing rapidly.  "According to the to Interactive Advertising Bureau, total online ad revenue reached $9.26 billion in the third quarter of 2012, which is up six percent from the previous quarter and 18 percent from Q3 figure of $7.8 billion a year ago."  And with the rise of tablets and smartphones, online advertising should continue at this healthy pace for quite some time.

Of course, online businesses are still trying to figure out better mousetraps to monetized their content.  Smaller screens, targeted advertising, paid search, and other means to attract an audience and advertising dollars.  The virtually infinite number of online sites and choices has created a very long tail from which to choose.  Online, unlike other media platforms has become so vast and fragmented that the top of the pile grows through acquisition and integrated marketing efforts while smaller sites hope to find traction to grow its audience and reach.  And unless these sites can find a business model to sustain themselves financially, they must eventually fade from site.

The online marketplace is a very young place, unlike the cable and print platforms.  But the  similarities are clear.  Eventually, the big fish will either absorb the little ones or the little ones will thrash around until they can grow themselves into bigger fish or simply fade away.

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