Where will we put all those ads?
Higher pricing for Internet advertising is an inevitability over the next six years, according to a must-read commentary today by Jarvis Coffin, President and CEO of BURST! Media, and published in MediaDailyNews. Citing a Sanford C. Bernstein & Co. proposal that online spending will reach $22.5 billion in 2010, Coffin says that’s a lot of money and wonders where we’ll put it.
So, six years from now the Internet will have added $14 billion of sold inventories to the current $8.3 billion, and will be bigger than network television. Only cable will be bigger–challenging online for supremacy in a specialty-content age. But cable’s days will be behind it, and the Internet’s will be ahead.
Actually, I believe by 2010, Cable and the Internet will be joined at the hip, but I digress. Coffin notes that price will account for some of the increase, and he’s optimistic that we can get better as we get bigger.
$22.5 billion is a lot of advertising. This will force distribution over greater portions of the Internet with two positive effects: 1) the improved quality and experience of content across-the-board as independent publishers step up to meet demand, and 2) transparency as buyers insist on strict accountability, including audited placement and delivery of all advertising.
This is an important commentary for several reasons. One, Coffin is a guy who ought to know. As president of one of the top distributors of Internet ads, he’s on the front lines of the rapid growth in Internet advertising. Two, the Internet is a fabulous bargain for advertisers at this point in time. The low prices are but a wisp of what other forms of media get, and that just can’t last. This is why I keep hammering away at local broadcasters that they MUST get into the sophistication of contextual advertising. Today’s $5 CPM will be tomorrow’s $100 CPM, and that ain’t chicken feed.
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August 6th, 2004 at 1:41 am
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