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Future Shock for Internet Ads

Heidi Heller, Kevin Swan, & Heather Smith . Future Shock for Internet Ads . Advertising Currency. The internet display-ad market’s currency is their ad inventory. The article uses the example of: “What does the internet display-ad market have in common with Zimbabwe?

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Future Shock for Internet Ads

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  1. Heidi Heller, Kevin Swan, & Heather Smith Future Shock for Internet Ads

  2. Advertising Currency • The internet display-ad market’s currency is their ad inventory. • The article uses the example of: • “What does the internet display-ad market have in common with Zimbabwe? • “Both are printing nearly-limitless amounts of their main currency.”

  3. Current Problems with Online Advertising • Difficult to determine exact ROI from a specific advertisement. • Banner ads are too frequently used and often do not match the site on which they are displayed. • The oversupply of online advertisements combined with a price disequilibrium, has created what some analysts consider a bubble.

  4. Inundation of Advertisements -The graph shows internet advertising revenues from 2003-2008 -Internet advertising sales have approximately tripled in 5 years. -With the increased purchasing of internet advertisements comes more noise in the online channel.

  5. There is Still Hope • As marketers increase their spending on online advertising, the quality of advertisements will naturally increase. • Consumers have become numb to standard banner advertising. • Companies are demanding different types of ads that are more effective • Search advertising expenditures are increasing

  6. Article Info • The article was found on WSJ.com in a section called “Heard On The Street” • Published February 17, 2009 • Writen by Martin Peers

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