Gloom and doom tends to dominate online ad market projections these days. JP Morgan and Barclays Capital analysts posted dismal growth prospects at the beginning of the year. eMarketer, the industry cheerleader, continued to downgrade its projections for 2009 through the latter part of last year. Chatter in the blogosphere would only seem to delight if you were given to schadenfreude.
With such a grim outlook, it’s nice to hear optimistic projections contrary to ever-plunging growth figures. Here are two I saw the past couple of days:
Though 97% of U.S. small-business owners have some degree of concern about today’s dismal economy, 26% plan to spend more on advertising – especially online and direct – and another 60% plan to spend about the same as in 2008, according to a report from Ad-ology Research.
The “Ad-ology Small Business Marketing Outlook” survey found that though 25% of owners of small businesses with less than 100 employees are fearful about the current economic situation and 58% are concerned, they are also cautiously optimistic, writes Marketing Charts. Some 83% expect 2009 sales to be up or about the same as 2008.
In terms of 2009 spending on various media types, more than half of small business advertisers plan to spend the same or more on the following: Online advertising (69%), Yellow Pages (54%), newspapers (51%), and direct mail (51%).
At the other end of the size spectrum, Mike Peralta of AOL’s Platform-A was optimistic about the spending prospects among CPG clients, even though some verticals, like auto & retail, are most certainly down.
E-Commerce Times: Do you think the online advertising industry can survive this recession? It’s getting ugly out there.
Mike Peralta: Yes it is. Online advertising, though, is performing relatively well, although not all of the categories are up. Retail, for instance, is down; so are autos. But what is happening, and why I am bullish as we go into 2009, is that there are a number of categories and clients out there that have been underrepresented online.
For instance, consumer packaged goods companies have spent between 3 percent and 4 percent of their overall ad budgets online. That trails by a third general ad spending online. As the economy gets tougher, a lot of folks will look online as a way to run a more effective campaign.
ECT: So you see a boost in CPGs’ online spending in 2009?
This entry was posted on Friday, January 9th, 2009 at 4:42 pm and is filed under Online Advertising. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.