Monday, February 23, 2009

Why the online business is changing so fast

Business Week, page 48 (March 2nd issue):

Ad Networks are used by marketers 50% for the allocation of their online advertising budget, up from 30% in the past. The respective rest is made up by spending directly with a web site. This change is due to the current economic environment and the tighter situation for marketing dollars. The networks are believed to be cheaper on a CPM basis. They seem also more effective in delivering a niche audience to marketers. The competition amongst the networks has driven prices down to 50% compared to pre-recession times. With sites and content still emerging all over the place the inventory for ad space might be just too big on the internet - especially in a recession.

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