Internet advertising is taking a beating, calling into question the value of marketing on the Internet at all. The current state of affairs may just be a catalyst for much-needed improvements in online creative.
If you want to believe the latest hype, online advertising might as well be dead. Disney just announced that it's closing Go.com and severely cutting back its Internet operations. Amazon's slashing 1,300 jobs, and even the infamous FuckedCompany.com seems to have expanded its rumor mill beyond "dot-coms" to sensational stories about established blue-chip clients.
A recent series of articles on www.fortune.com discussed probably the most significant issue facing online advertising at the moment. To quote Fortune, "What should really have Web sites trembling is that big advertisers have suddenly gotten their heads around the Web. And the more they embrace it, the less inclined they seem to throw heaps of money at portals, ad networks, and other stand-alone sites."
A report from CNNfn had this to say: "The GDP report showed that growth in consumer spending -- which fuels about two-thirds of the country's economy -- slowed to a 2.9 percent pace in the fourth quarter of 2000 from 4.5 percent in the third quarter. Analysts had predicted a drop-off in consumer spending, after a lackluster holiday shopping season that underscored consumers' cautious outlook."
Since the new economy seems to be the whipping boy for our slow economic growth, Internet advertising has suffered severely, calling into question the value of marketing on the Internet at all.
Don't get too discouraged; the current state of Internet advertising just may be a catalyst for making some much-needed improvements.
Internet advertising will survive. Online media outlets may have to make some adjustments to attract advertisers. Those that don't adapt, as always, won't survive. We're experiencing a strategic inflection point in the Internet advertising industry; the direction we choose now will decide the direction of the next era of online advertising.
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Adam Jackson is a freelance Art Director in New York City. He has worked on top brands for several interactive ad agencies and with some of the top Internet marketing minds. He has worked with Sony, Lockheed-Martin, Best Buy, Ameritrade, Coca-Cola, Diet Coke, IBM, Valvoline, Monster.com, and a host of blue-chip Canadian brands. With five years of industry experience, and a few awards, Adam's career has grown with the Web.
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