Online Search Ads Faring Better Than Expensive Displays

05/19/2008

Media companies looking to expand their advertising revenues through online display advertising may have to rethink those plans. Overall, rates for online ads bought through advertising networks fell 23 percent from March through April.

And, several high-profile companies report either an outright downturn in online display advertising revenues, or have reported mixed results regarding them. AOL saw an 18 percent drop; Microsoft, which reported an overall drop in ad revenue of 11 percent; and Yahoo, which revised its direction because of the softening display advertising market.

While experts caution that the economy could get better and turn these numbers around, the reality right now hasn’t escaped online ad sellers.

It appears that in this environment, more companies are taking a cautionary approach to online advertising by sticking their toes in the less expensive search waters first. Search ads represent a bright spot for online advertising.

Internet marketers like search marketing because it is a relatively inexpensive and effective alternative to more traditional advertising outlets like radio, television and print advertising. And, search marketing tends to be recession proof. As evidence, you need look no further than Google, which posted a $1.31 billion profit in its most recent quarter. In the U.S., this represents a 30 percent increase over last year.

Some Internet marketing analysts tout that this downturn can actually help some media companies because many firms seeking less costly forms of advertising in an economic slump will shift marketing dollars online.

When you consider that online advertising is easy to track, measure, and is less expensive than many other forms of advertising, it will remain a viable form of marketing even in trying economic times.

For more insight visit Internet Marketing Services