As the current recession shows no signs of easing off and were half way through 2009, it is easy to see the differences between this recession and the last one in the early 90s. I am referring of course, to the Internet and the way it has taken the advertising industry by storm.
As advertising mediums such as television and radio fall drastically (by around 13-15%), online advertising is holding up strong as it has barely fallen at all since the start of the recession.
So although all of the other advertising mediums are declining at a rapid rate, online ads are looking like their going to weather the storm, even with businesses reducing their spend.
So why hasnt online advertising taken a fall like ALL of the other advertising mediums? Well, one theory is that it is down to how the majority of online advertising is paid for, per click.
Probably the best place to start with online advertising would be the market leader, Google. As most people are aware the advertising method they most commonly use is based on pay per click payment, as do most online advertisers, but not all.
The most rational theory behind the steady growth of online ads is that people would much rather pay out small sums for each lead they get to their site than pay out large sums with the risk of not returning on it.
In the last recession, online advertising took just as much of a fall as the other mediums, if not more. But many people think the reason for this is that the Internet hadnt proved itself as an advertising medium back in 1991. As money got tighter people would have been more inclined to stick with the methods they knew rather than try out relatively unused and new methods at the potential risk of their turnover.
Now, nearly 20 years on we are in recession again only now the Internet is far more recognisable as a medium for advertising. If theres one thing that we can take from the last recession its that it will be the businesses who devote time, effort and money into an effective advertising campaign that will end up as the market leaders, regardless of your niche, and those that hold back on advertising and marketing will be the ones that suffer the full wrath of the recession.
As advertising mediums such as television and radio fall drastically (by around 13-15%), online advertising is holding up strong as it has barely fallen at all since the start of the recession.
So although all of the other advertising mediums are declining at a rapid rate, online ads are looking like their going to weather the storm, even with businesses reducing their spend.
So why hasnt online advertising taken a fall like ALL of the other advertising mediums? Well, one theory is that it is down to how the majority of online advertising is paid for, per click.
Probably the best place to start with online advertising would be the market leader, Google. As most people are aware the advertising method they most commonly use is based on pay per click payment, as do most online advertisers, but not all.
The most rational theory behind the steady growth of online ads is that people would much rather pay out small sums for each lead they get to their site than pay out large sums with the risk of not returning on it.
In the last recession, online advertising took just as much of a fall as the other mediums, if not more. But many people think the reason for this is that the Internet hadnt proved itself as an advertising medium back in 1991. As money got tighter people would have been more inclined to stick with the methods they knew rather than try out relatively unused and new methods at the potential risk of their turnover.
Now, nearly 20 years on we are in recession again only now the Internet is far more recognisable as a medium for advertising. If theres one thing that we can take from the last recession its that it will be the businesses who devote time, effort and money into an effective advertising campaign that will end up as the market leaders, regardless of your niche, and those that hold back on advertising and marketing will be the ones that suffer the full wrath of the recession.
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