Should the online advertising industry try to freeze the economic meltdown?! Dumb meets dumb...
To start on a positive note, the number of windows popping up aka
online ads are on a decline since the past few months. Positive for the surfer, given the irritant value that comes combined with pop up ads. According to ComScore’s AdMetrix data, internet surfers were exposed to 12% less display-ad impressions per page view than they were a year ago. Whether it’s a conscious decision of the advertisers present on the digital media or just a mere coincidence, the fact is that the falling growth rate of the online ad industry is good news for advertisers! Surprised? We called it, dumb meets dumb. Well, a study conducted by Dynamic Logic, Starcom and DoubleClick in 2007 found that a 15% increase in ads on a page results in about a 10% decline in click-through rates. Well, if that is not a positive correlation, read on to get confused a bit more.
The global online ad industry is supposedly valued at somewhere around $23 billion and has registered a double digit growth from the past five years. Fortune 500 companies like Google, with more than 98% of their revenues from online advertising, are leading examples of the power of this industry. Expectably, the tanking economy contributed towards the cutting of advertising budgets of many companies. But most interestingly, there was a set of companies who shifted to the digital media in the period of this economic meltdown. Before you award us the Pulitzer, do read the inference, which is quite simple. The group of companies were those who were earlier relying on the traditional mass mediums to keep their brands very much in the sight of the consumer. Simple analysis shows how, in order to save increasing advertising costs in traditional media, these companies moved their budgets more towards online advertising in order to equate brand recall with investments. But the question then comes, when – and if – the global economies start moving out of the negative phase and recessionary trends, would these companies withdraw their current budgets from the online space?
And if that will be the case, it would surely result in making times worse for the players in the online advertising industry. Anjali Hegde, Vice President, Interactive Avenues does confirm, “As the worldwide economies will stabilise, the online ad agency will see a fall in the growth rate.” However, Hegde takes no time to highlight the fact that smart marketers – given the positive feedback with their initial online advertising experiments – will still stick to digital arena in the long run. Talking on similar lines, Deepak Singh, Director, Young Turks asserts, “The online ad industry will see a fall in growth rate as the economies will recover from this downturn. However, the fall will not be very significant.” Clearly, the prevailing economic slowdown is perhaps a blessing in disguise for the online ad agencies and online advertising media as – given their relatively lower advertising rates – they seemingly have a sustainable and strong competitive advantage over their nearest rivals, namely print and electronic media. Also is the fact that once a client, who perchance had never tested and tasted the power of online advertising, does so, there is good enough chance that the client might just stick on, irrespective of the rival media offering similar rates of advertising. Well, Christmas is just around the corner and it just seems it’s the start of an unexpected war of the fallen worlds... Duh!
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Source : IIPM Editorial, 2008
To start on a positive note, the number of windows popping up aka
online ads are on a decline since the past few months. Positive for the surfer, given the irritant value that comes combined with pop up ads. According to ComScore’s AdMetrix data, internet surfers were exposed to 12% less display-ad impressions per page view than they were a year ago. Whether it’s a conscious decision of the advertisers present on the digital media or just a mere coincidence, the fact is that the falling growth rate of the online ad industry is good news for advertisers! Surprised? We called it, dumb meets dumb. Well, a study conducted by Dynamic Logic, Starcom and DoubleClick in 2007 found that a 15% increase in ads on a page results in about a 10% decline in click-through rates. Well, if that is not a positive correlation, read on to get confused a bit more.The global online ad industry is supposedly valued at somewhere around $23 billion and has registered a double digit growth from the past five years. Fortune 500 companies like Google, with more than 98% of their revenues from online advertising, are leading examples of the power of this industry. Expectably, the tanking economy contributed towards the cutting of advertising budgets of many companies. But most interestingly, there was a set of companies who shifted to the digital media in the period of this economic meltdown. Before you award us the Pulitzer, do read the inference, which is quite simple. The group of companies were those who were earlier relying on the traditional mass mediums to keep their brands very much in the sight of the consumer. Simple analysis shows how, in order to save increasing advertising costs in traditional media, these companies moved their budgets more towards online advertising in order to equate brand recall with investments. But the question then comes, when – and if – the global economies start moving out of the negative phase and recessionary trends, would these companies withdraw their current budgets from the online space?
And if that will be the case, it would surely result in making times worse for the players in the online advertising industry. Anjali Hegde, Vice President, Interactive Avenues does confirm, “As the worldwide economies will stabilise, the online ad agency will see a fall in the growth rate.” However, Hegde takes no time to highlight the fact that smart marketers – given the positive feedback with their initial online advertising experiments – will still stick to digital arena in the long run. Talking on similar lines, Deepak Singh, Director, Young Turks asserts, “The online ad industry will see a fall in growth rate as the economies will recover from this downturn. However, the fall will not be very significant.” Clearly, the prevailing economic slowdown is perhaps a blessing in disguise for the online ad agencies and online advertising media as – given their relatively lower advertising rates – they seemingly have a sustainable and strong competitive advantage over their nearest rivals, namely print and electronic media. Also is the fact that once a client, who perchance had never tested and tasted the power of online advertising, does so, there is good enough chance that the client might just stick on, irrespective of the rival media offering similar rates of advertising. Well, Christmas is just around the corner and it just seems it’s the start of an unexpected war of the fallen worlds... Duh!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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the various IT companies. A study titled ‘IT opportunity in the SMB sector’ by Zinnov Management Consulting reports that this segment in India spent nearly $6.6 billion during 2007-08, which is 30% of the total expenditure on IT in India during the year. Indeed great news for the IT sector, but what about a time when funds are quickly drying up? Indeed, for the SMBs, it is getting difficult by the day to maintain the expenditures for keeping pace with speed at which technology is getting upgraded, reinvented and reinnovated! And that’s where Cisco Capital comes in, to help solve the financial problems that the SMBs are facing to buy/utilise latest in the field of technology. Cisco Capital is a wholly-owned subsidiary of Cisco Systems and therefore a captive financing arm of Cisco. It however also deals directly with high-end enterprises and high end customers. It was incorporated in 2005, with an initial corpus of $150 million. It is dedicated to providing financing solutions and options to Cisco’s channel partners and its customers. In an exclusive interview with 4Ps B&M, Gautam Munish, Country Manager, Cisco Capital, discloses how Cisco Capital helps organisations derive maximum from investments in technology...
need to maintain steady economic growth of 7-8% to lift millions out of poverty. Unfortunately, for countries like US, who are staring at prospects of economic degrowth, the challenge seems to be with respect to millions that are not in poverty yet. The challenge increasingly would be how to keep them there; as companies, one after another are sounding the alarm about not so impressive times ahead.
The word component is the domain of the Copywriter and the visuals, the Art person. Interestingly, although their combined creativity, skills and craft went into the making/creation of the ad, they functioned separately. This meant that the Copywriter wrote his stuff and handed it over to the Art person – usually with some guidelines – who then proceeded to visualise it in an appropriately meaningful manner. The duo also (frequently) came from different ‘social’ stratospheres. The Copywriter, usually, came from a Convent/Public School background, was fluent in English and totally comfortable with both the command and nuances of the language. He was also heavily into what this world offered – theatre, poetry, literature, cinema, cocktail parties… this invariably made him the ‘spokesperson’ of the creative team and the front guy during briefing, interaction and presentations. The Art guy, a hugely gifted person, normally was an Art School/College product, not terribly comfortable either with the English language or its fancy manifestations. He/she was happy to do the work assigned to the best of his/her ability and go home, quite content to live in the shadows…
who was shot down by a policeman in the Exarhia district on December 6, 2008, fortifies that he was killed by a direct shot and not otherwise. And the rest is still 'not' history. Within the first one-and-a-half-hour, the Greeks were on the roads of Athens, protesting and burning Greece. Later, all cities of Greece were engulfed in demonstrations and riots (similar to one in 1985). The noteworthy point is that this riot was just not confined to Greece and its vicinity, but spread across the whole of Europe (Paris, Rome, Berlin, Frankfurt, Madrid, Barcelona, Copenhagen et al).
the hottest tourist destinations in southern India. Now called the Salarjung Museum, it is fabled for its priceless artifacts, statues, jewellery, startling paintings, gorgeous chandeliers and yes, scores of chiming clocks. When they chime all together at noon, they create an ambience that is magically musical. Nizam’s Hyderabad was the largest princely state of India. And yet, though the clocks remained, time ran out for the Nizam’s in 1948.
sect got the name ‘Navayaths’, or newcomers. Their roots were firmly anchored in the Arab world. But now Bhatkal and Navayath are synonymous and this community of around one lakh is distinct from other Muslim communities of the country. There were many theories about their actual place of origin and the process of settlement.