E-Tactics Rolling Up Our Digital Shirtsleeves

Do You Agree?: Ad Models on Social Media and Online Video Will Fail in 2009

Just clipped from Mediapost article

According to a new 2009 outlook for the Internet industry released Monday by a top Wall Street researcher. JP Morgan's Imran Khan predicts that advertising models would fail for two of the Web's hottest emerging platforms - online video and social media - and that it would take longer than expected for a substantive mobile advertising marketplace to emerge.

Next two quarters look tough....

Khan predicted that the fourth quarter of 2008 and the first quarter of 2009 would prove to be the toughest financial quarters for the online industry, and that the Internet economy would begin to rebound in the second half of 2009.

CPM pricing will remain flat....

The economic pressures, he predicted, would also drive a greater share of online advertising investments toward "performance-based" advertising models and away from traditional "CPM-based" models, and that in turn would contribute to the downward pressure on online CPMs during 2009.

That shift, coupled with contracting display advertising budgets, and an expanding supply of "non-premium inventory pricing" from ad networks, social networks, and other sources, will contribute to flattening CPMs for online display advertising.

Full story available at this link: http://bit.ly/JsCe