nternet content advertising model, where is the problem


(originally from Reuters Opinion, tiger sniffing compilation)

as early as December last year, a reporter summed up one of the most important questions about online advertising: advertising was finally spent buying people’s time. Is that a "fallacy"?

the reporter wrote, "if the attention time is supplied, the advertising budget is the demand of the…… just because people in the Internet media spending more and more time, does not mean that advertisers have also become big advertising desire." Indeed, as online advertising prices continue to decline, it seems that the total amount of online advertising will only be smaller, rather than increasing (because the price of ad purchases is decreasing).

according to Marie Mick (Mary Meeker) estimates that 67% of the total advertising spent on television or print media above. Research firm Bernstein Todd (Todd Juenger) Zhu Engel believes that from 2009 to 2012, the total television advertising media actually on the rise, although this time the audience’s attention is on TV from the transfer to other screen. I think this is reasonable, and pointed out that as early as 2009: brand promotion (brand advertising) and direct marketing (direct marketing) have a significant difference, the television media to brand promotion, direct marketing and online advertising is near field.

when Marie Mick is talking about advertising, the main thing is branding. Brands are very valuable, with billions of dollars invested each year in order to maintain brand value, most of them spent on television and print media. If you’re a national brand, the only way to cover the nation’s audience is to buy advertising on television. The cost of doing so is expensive, but it is essential and effective. It also explains why there is a lot of money spent on television every year.

Zhu Engel that over the past 20 years, the network television audience at an annual rate of 1.8% in reducing – and at the same time, the total audience of other TV channels are reduced to a smaller segments, the network has become the value scale, advertisers only choice. As a result, network-TV TV advertising costs are increasing at an annual rate of 4.9%, while overall revenues are increasing at an annual rate of 3%, while overall market space is shrinking.

online advertising has nothing to do with the situation. Here is a chart from Nelson (Nielsen) that analyzes how audiences spend on different screens each month

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