Internet Gobbles Up Advertising Money
The long tail is getting longer.
eMarketer, a market-research firm specializing in “e”, says that US Internet advertising spending is expected to reach $16.4 billion in 2006, a 30.8% gain over last year’s $12.5 billion figure. The bad news is overall ad spending is expected to remain relatively flat.
“At the rate Internet ad spending is growing, it should match radio next year and will surpass it in 2008,” says David Hallerman, eMarketer senior analyst. Radio is considered one of the four “big media” along with Television, Newspapers and that stupid billboard you keep seeing on your way to work. Actually, the story I read declined to specify the four big media, but states that billboards aren’t among them. Except that one on your commute.
Talking about the long tail, I ran into this great quote yesterday: “Long-tail economics isn’t an argument that niche content will win over mainstream content; it’s an economic theory that suggests that it is efficient for micro-markets to flourish.” (Jeremy Allaire of Brightcove; hat tip to Steve Bryant at reelpop) So in other words, I’ll never get famous doing this, but I could get rich. I can hang with that.
January 3rd, 2007 at 5:13 am
[...] The surest indication that this business model is crumbling is advertising money. I wrote in July that sponsors are committing less money in advance to CBS and ABC than ever, because they’re putting more into basic cable and Internet. I refer you to Chris Anderson’s THE LONG TAIL, a book about the rise of narrow-casting. [...]