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The Shift Continues - Advertising Investment Moving Online


The SF Business Times wrote an article echoing what we, along with virtually every other online marketing expert, has been saying for some time.

Advertising dollars are moving online. And the proof is simple. Online is moving past TV, radio and movies:

Burlingame-based Outsell Inc. predicted online advertising spending would best advertising spending for TV, radio and movies in 2008 for the first time. Companies are projected to spend $108 billion online and $98.5 billion on TV, radio and movie ads. Print media will still take in the lion’s share of advertising dollars, capturing a projected $147 billion.

Now obviously, this isn't local advertising we're talking about, but national. Nonetheless, it's indicative of a larger line of reasoning. Local has traditionally followed in the footsteps of the national advertisers. And certainly, as the shift continues and things like print yellow pages move toward their eventual demise, we will see that local will move online while taking dollars away from other medias. It seems that, at least initially, it will be from more advanced media and not as much from print.

“You really have dollars flowing from traditional media to online media,” said Jeffrey Glass, a partner at Bain Capital Partners in Boston. “So even though there’s generally a soft economy out there, you’re seeing a massive flow of dollars from offline to online.”

So there you have it. Nationally and locally, advertisers are recognizing that it is simply more cost effective to move online. And it seems that more than anything, it is a soft economy that has helped move that shift along.