Online Advertisers Tightening Budgets Due to Economy Climate
October 16, 2008 by Pablo Palatnik
YES, that’s the issue of the past 2-3 months and the daily issue of today. THE ECONOMY. It’s affecting every single business in the U.S., not to say business arent making money in these times, but moreso than not, business are tightening their budgets and its affecting everyone, especially the largest search engine advertisers, Google and Yahoo.
Google will announce their 3rd quater earnings which I’m eager to see a little later today, and Yahoo will do so next week.
These are tough times and I can remember a year ago, maybe even less, maybe a little more when clients cared more about traffic than anything else. Yes, ROI has always been the prime concern of any online advertiser but with the boom of digital marketing, which made many online agencies as big as they are today, it was all about traffic, besides, there are always bargains for certain keywords. You can pay as low as .5 cents a click to get traffic to your website.
The first thing a business that wants an online presence will ask or tell you is, “I want more traffic.” As that has been the primary concern for many, times are really changing from an advertisers persepective to make sure their advertising dollars are being spent wisely.
The great thing about online marketing is that almost every cent can be accounted for and tracked with conversion tracking, analytics that provide so much data to advertisers to better know where to spend money.
From the New York Times article, “Prices Falling for Online Ads,” here is a long, but “tellable” quote of some of the things we are seeing online as advertisers backout, prices of clicks go down.
“PubMatic tracked the sale of display ads through ad networks on Web sites in 20 different topic areas. Ads on social networks fetched the smallest price per thousand eyeballs — 21 cents, down 22 percent from the second quarter. Ads on sports sites were next lowest, at 25 cents. Ad prices on entertainment sites saw the steepest drop, to 33 cents.
Ads on business and finance sites had relatively high prices, at 86 cents, but that was down 22 percent from the second quarter. Web sites about technology were the only category that didn’t see ad prices fall — they stayed flat at 57 cents per thousand pairs of eyeballs.
Ads on small Web sites, those that get fewer than 1 million page views per month, sold on ad networks for three times as much as space on big sites with more than 100 million page views per month. The average price advertisers paid for every thousand pairs of eyeballs that viewed their ads was 61 cents on small Web sites and 18 cents on large sites.”
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Comments (3)
[...] its Q3 earnings for 2008 and they are more than positive. With the economy being the way it is and advertisers tightening their budgets to control their ad spend, Google still came out on top. “…net income for the period [...]
Great post. I had a sense that this was happening. It’s good to see the numbers behind it though. I have been noticing that ringtone payouts have been dropping as well. Everyone seems to be cutting costs.
[...] those who read my post, “Online Advertisers Tightening Budgets Due to Economy Climate,” its strange that in a time like this, they would make the decision to increase advertising [...]