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  1. #1
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    January 18th, 2005
    New York
    What's next?
    by Masha E. Geller

    What’s a Jupiter Advertising Forum without an optimistic Jupiter forecast? An impossibility, of course. As expected, the researchers unearthed their crystal ball earlier this week at the New York gathering of online aficionados and reported that while online advertising spending is expected to be flat between 2001 and 2002, 2003 spending is forecast to grow by 10%.

    According to the Jupiter, marketers will spend only $5.6 billion on online advertising in 2002, but moderate economic growth in the U.S. and low effective CPM rates will fuel online spending by traditional advertisers in the near term. Online classifieds will also continue to be a bright spot with $1.4 billion in spending in 2003, representing 16% growth over the current year. Other factors driving increased spending are continuing growth in the online population, growing broadband adoption and smarter inventory control among online publishers. According to data released at the Jupiter/IAB Advertising Forum held in New York City on October 21-23, the industry will start to rebound and increase to $14 billion by 2007.

    The Jupiter Research report, “Online Advertising: Traditional Advertisers, Classifieds Pave Road to Recovery,” also reveals that traditional advertisers provide the greatest online ad spending opportunities for ad sellers in the near term. According to the Jupiter Research Category Advertising Model, media currently represents 20% of online ad spending, financial services contribute 17% and computer hardware & software 12%. Within the next five years, Jupiter Research predicts that the automotive industry will spend $1.8 billion on online advertising, while health companies will spend $1 billion and the travel industry more than $800 million.

    “Given the current economy, online ad spending understandably saw a year of virtually no growth, but the industry is in recovery mode,” said Patrick Keane, Vice President and Senior Analyst for Jupiter Research.

    I hope he’s right.

    (c) MediaPost Communications 2002

    <font size="2" face="Verdana">Haiko

    The secret of success is constancy of purpose. ~ Disraeli

  2. #2
    Resident Genius and Staunch Capitalist Leader's Avatar
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    January 18th, 2005
    Is affiliate marketing included in their definition of advertising?

    If not, then it doesn't seem good for affiliate marketing to have competing channels doing better. If CPM does better, for instance, that'd mean less opportunity to make Serious Money instead of peanuts--at least for commercial sites.

    There is no knowledge that is not power.~~Ralph Waldo Emerson

  3. #3
    pph Expert! Gordon's Avatar
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    January 18th, 2005
    Edmonton Canada
    They might think CPM does better, In the old days when most people had banners rather than products I would think the click throughs were far less than they are getting now simply because we promote products and not banners any more. What they may not realise is that a visitor is far more likely to click when they see the product than they are on a banner.

    Maybe they think we will still advertise the products like we are doing now but settle for CPM rates.

    Travel safe

  4. #4
    Resident Genius and Staunch Capitalist Leader's Avatar
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    January 18th, 2005
    It's that last part that has me worried (they wouldn't think that for long if they tried to get me to take hardy har CPM rates though). If traditional advertising strengthens, affiliate marketing may end up weakened or lose merchants outright.

    So while traditional advertising has its points, when it comes to doing it online I prefer Affiliate Marketing to continue to do well instead.

    There is no knowledge that is not power.~~Ralph Waldo Emerson

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