Despite Recession, Internet Advertising Still Growing

Although the overall advertising market is expected to decline in 2009, several recent reports are still projecting an increase in the on-line advertising space.

Too Little Value

If you have ever attended a business plan seminar, an elevator pitch class or  a forum on how to pitch your company to investors you will realize a common theme exists – your ideas is providing a solution to what problem? Another way to describe this concept is what value do you provide to your target audience? Generally this concept is held in high regard – except in the world of the Internet business.

Running Out of Online Advertising Inventory?

There is an interesting article released by McKinsey and Company looking at the growth in advertising spending on the Internet and the potential challenge of limited inventory.  The study has sparked several articles including one in AdWeek worht the three minutes of time.  

The Ad Week article  does a nice job of highlighting a few data points and the fear of CMOs to move online because of the lack of metrics for impact:

“McKinsey polled 410 marketing executives in five sectors, and among those already advertising online, 52 percent said “insufficient metrics to measure impact” was the biggest barrier, followed by insufficient in-house capabilities (41 percent), the difficulty of convincing management (33 percent), limited reach of digital tools (24 percent) and insufficient capabilities at agency (18 percent).”