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Summary:

The total ad market appears to be stabilizing, says Bernstein’s Research, but with Q1 having been so brutal, stability isn’t feeling so good…

The total ad market appears to be stabilizing, says Bernstein’s Research, but with Q1 having been so brutal, stability isn’t feeling so good. Ad spending declined 15.1 percent — a new all-time low for Bernstein’s six-year-old ad-tracker database. No single platform saw growth in Q1, as online ad spend fell 4 percent, a first for Bernstein’s ad tracker. As for traditional advertising, this was the eighth consecutive quarter of negative growth, as it dropped 18.4 percent. See the chart below to look back at the past six years.

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  1. Jeremy Goodrich Wednesday, May 27, 2009

    So there are three ways to make more money on advertising…one of which is to grow your share (eg, if you own 1% of the market, try to take over another .1%, thus increasing your revenue by 10%).

    The other way of course is to throw more ads on the page…which if you're under monetized can boost your numbers.

    The third way is if the market is growing…just hold onto your share of the pie and as the pie expands, you naturally get a bigger slice.

    We're up y/o/y in ad click through rates by 10% and our eCPM is also up about 10%…of course, we've taken share as well as overall numbers have grown nearly 300% y/o/y. Still it's not all "doom & gloom"…in a shrinking market, growing *your* share has a doubling effect: for every incremental dollar in revenue you take in…somebody else, effectively, loses *more* than a dollar as the market contracts…

    food for thought, really. I for one am not going to fixate on "doom & gloom" as long as there is *some* money being spent…I'm going to try to increase the share that goes to our company.

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