Tuesday, January 01, 2008

Online Advertising's Great Digital Race

Online Advertising's Great Digital Race: "In the last couple years, digital advertising has looked a little like an ultramodern version of the great race to the west coast.

Helge: Digital Advertising made Google what it is today.

Are there any corners left in the online world where advertisers can plant a flag? In the great digital race to monetize the Web, what will they think of next? Plenty.

Helge: The race will continue 2008?

Although it would be wrong to say that digital advertising is still in its infancy, it is still a young industry. By most accounts, online advertising still represents less than 10 percent of companies' overall corporate ad budgets.

Helge: Are we in the beginning? Less than 10 percent!

Looking ahead to 2008, it is hard to steer clear of the ominous talk of recessions, credit crises and the attendant mortgage fallout. The Fed's been cutting rates and the president has pledged to freeze the rates of hundreds of thousands of subprime borrowers who got swept up in the real estate boom in the first half of the decade. All to forestall a potential recession that some analysts warn is inevitable.

Helge: Credit crisis, mortgage fallout, potential recession...?

The belt-tightening is already underway, according to reports from two of the world's largest advertising groups. Universal McCann and ZenithOptimedia predict that overall ad spending will see only modest growth next year, but that the industry will not enter recession.

Helge: Are companies spending less on advertising?

The outlook may be somber for the ad industry at large, but analysts look for online spending to buck the trend."

Helge: We'll have more of it. It's still the beginning.

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