Tuesday, October 07, 2008

Larry Dignan posted some interesting charts, graphs and figures today over at ZDNet looking at advertising revenue for the first half of 2008, compared to previous periods. He also asks what will happen to advertising revenue in the faltering economy. Good question.

What I know best is my experience, which is undoubtedly unique since this site is not exactly huge (about 750K pageviews/month). However, over the past few years I have watched my revenue trends from contextual advertising rise and fall. In these most recent "tough" times for the overall economy, my advertising numbers (meaning impressions, click-through rates, eCPM, daily revenue, etc.) have increased somewhat dramatically.

If you think about it, this could actually make some sense. Less discretionary, from-the-hip spending by various types of consumers means the market needs to find effective ways to reach out to buyers. In many cases, where consumers are looking to save a few bucks on a purchase, they will naturally turn to the Internet for better deals. So, maybe the Internet advertising world has a real opportunity.

My weblog and the few other site I have don't rely on financial services or automotive industry related advertising, granted. I could be way off base here. Yet I can't help but wonder what the second half will look like. I have at least some confidence it will weather this storm. Time will tell.

Thoughts?



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Tuesday, October 07, 2008 11:37:05 AM (Pacific Standard Time, UTC-08:00)
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Tuesday, October 07, 2008 4:58:03 PM (Pacific Standard Time, UTC-08:00)
Interesting. I don't think the upswing you're seeing is because of the economy, and I definitely don't think it's because more deal-hunters are taking to the Internet, but interesting. Applying Occam's Razor here, far more likely that you have more readers, a different mix of readers, or a different ad layout which is affecting those figures. That said, we're a month out from a presidential election and the economy's in a shambles, two factors which cause people to get online in large numbers. That probably means residual traffic increases for other sites, which could lead to an increase in impressions. But conversions? That should be something related to your site.

To put it another way, even though times are lean and people aren't spending, if you're getting more actual readers than you used to, and converting them more effectively, your performance should increase. Just a thought.
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