Where Oh Where Have The Ad Dollars Gone?

Online advertising in the US will decline for the first time in nearly a decade. Now, don't panic, it's just a minor setback as it's expected to make a speedy recovery next year to full health and continue tackling the big dogs of traditional print, radio and TV. Oh, and as for video....It's expected that we [online ads] might shave off almost 5% overall for the year. But wait, this site is about online video and search engine optimization right? Well, while the rest of the online ad industry has declined, video and search actually experienced growth. See how bloody cool we are! Even in a down year we outperform and continue to grow. In fact we probably kept the industry from dropping a double digit bomb this year. Am I right? eMarketer recently said that even though there was growth in those two areas it was far less than the year before, but it's still better than a loss where I stand?

Marketing is, according to David Hallerman, eMarketer senior analyst, moving away from advertising. So that means less actual banners and ads and more expansion of brand awareness through social networks, media and websites (exactly why I positioned R2 Relations in that space). But since we [our loyal readers and ourselves] make videos and many brands need to use videos we're still in business right? That's what ReelSEO & Video Army do anyway (R2 Relations doesn't really do that, yet). Mr. Hallerman also says it's difficult to know exactly how much money is going into online marketing because of this because it's classified as website renovation, expansion, creation, etc (my thoughts on the subject, not his).

So what will our industry do this year? How's $295 Million in growth sound? Big right? Search ads pulled in a healthy $236M more this year as well.

Hallerman also said that Search will be the biggest of the bigs because when we search we create a target on us that the ads can then specifically be aimed at. Makes sense really, when you do a search it's because you're looking for something. But generally, I am looking for results on a specific site or a subset of sites and won't click on ads to fulfill my needs. I guess I'm still gun shy from then they all sucked eggs and lead to tangentially related sites at best.

Anyway, now until 2013 is the best time for Search ads and then in 2014, according to Mr. Hallerman, Video Ads will leap up and bite Search is the SERP.

What kind of growth is expected? Between 34% and 45% from 2009 through 2014. Mmmm...Chunky (remember that candy bar? anyone?)! Videos are squeezing out more traditional text and banner ads, mostly because they've been shown to be more productive I might imagine. Lots of money was lost in rich media overall but again, if it's not as effective as video so why spend on it?

Next year is set to be the end of the freefall with the entire ad industry coming in at only $163B he says, then after that it's Up...UP...AND AWAY!

So hang in there video dudes and dudettes. The end is nigh and if your business has been suffering because of the economy it's getting toward the rebound phase if we can believe everything we hear and if you can stick it out for another year you'll be ready to make some money. Perhaps it's time to employ some creative on the cheap so that when the flood comes, you're ready to go. (See how I look out for the creative talent in the world like myself? Of course the creative should be clever enough to only sign a 1-year deal or get a yearly renegotiation in the contract...)

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About the Author -
Christophor Rick is a freelance writer specializing in technology, new media, video games, IPTV, online video advertising and consumer electronics. His past work has included press releases, copy-writing, travel writing and journalism. He also writes novel-length and short fiction as part of Three-Faced Media . View All Posts By -

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    You are cent percent right that at this time online ads are going in decay with each passing day. This can affect the large online community. Good work on this topic. Thanks for the article.