Online Advertising Explodes with Web 2.0
It’s not news that the advertising landscape is changing. Without a doubt, the focus on traditional media is transitioning to new media. Time and time again, news reports mention the growing demand of interactive media specialists and how some fortune 500 company has decided to allocate more of their marketing spend towards the Internet. What makes this newsworthy is the rate at which this is occurring in conjunction with the rapid adoption of web 2.0 technologies. Online advertising is literally exploding.
Internet advertising revenues continue to set new records in 2007. Revenues in the first quarter of 2007 were up 26% from the same period last year. In less than ten years, quarterly ad revenues have grown from 500 million dollars to 5 billion dollars. Ten years ago, the tools, bandwidth and userbase were minimal. Today the Internet has matured and is poised to experience the true growth stage. If you relate to the product life cycle, consider the first ten years the early adopter stage. Now with broadband, advanced tools and a large and ever increasing userbase, the trend is going to continue at an even more rapid pace, the true growth stage.
Increased broadband penetration and a growing userbase are easy predictors of online advertising growth. But let’s examine the Web 2.0 tools that are adding fuel to the fire.
Video – Online video has increased greatly in quality and tools are available today that let users easily take advantage of this medium. YouTube, Google Video, Video for AdSense are all contributors to this rising trend.
Rich Media Ads – Some of these contain video but what sets these apart are the levels of engagement and interactivity users experience with an advertisement. The level of interactivity has evolved to the point that users can actually play games within online ads.
Podcasting – Audio and video casting continue to gain in popularity in conjunction with the rising consumer adoption of iPods and iPhones. Advertising opportunities exist to exploit this platform to its fullest.
Social Media – Sites are continuing to gain in popularity that focus on a particular niche or topic but utilize the social media format. Not only are there opportunities for banner and rich media advertising but also guerilla style marketing tactics by exploiting the format itself.
Advertiser Tools – As the formats increase, tools are being released that help manage online campaigns from purchasing to measuring effectiveness. Navigating the online advertising landscape has been an insurmountable challenge in the past but these tools are allowing marketers to become more savvy, efficient and effective in managing their marketing campaigns.
Blogs – Blogs continue to dominate the online audience. They have become so popular, site owners use the term “blog” rather than website. Blogging has greatly increased the advertising inventory and opened the door for more guerilla-based tactics as well.
RSS Feeds – Content syndication allows for the world of PR to evolve as well as distributing general marketing information.
Content Sharing – A host of sites exist that enable users to share links and ratings for other sites and content. Adding simple functionality from Digg, Technorati and others, users will drive traffic to your site on your behalf.
Virtual Worlds – The online 3-D world, Second Life is gaining in popularity and marketers are exploiting this medium by building worlds centered around their brand.
Chances are, someone right now is getting ready to introduce a new tool that fits under one of the above tactics or creates a brand new category. In every category that exists, the need and opportunity for advertising exists.
The marketing landscape is changing and online advertising is at the forefront. Opportunities exist for both publishers and marketers. Publishers have more revenue generating opportunities than ever before. Marketers have limitless choices for creating the most cost-effective marketing campaign possible. When is the last time you updated your site or explored some of these opportunities? I strongly recommend consulting with an expert to capitalize on these emerging opportunities.
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