Friday, January 09, 2009

Measuring the impact of advertising

J.P. Morgan: Performance-based ads trump all others online
According to the report, “Nothing But Net: Outlook for Global Internet Stocks in 2009,” search advertising will increase 10% this year to about $16 billion. Display advertising, which includes both performance and brand advertising, is expected to grow 6.3% to $8.4 billion.

I wonder if that is wise. Display advertising builds brand awareness and brand image. It is the sort of advertising the prospects keep in the back of their minds without even realizing it. Prospects have to see your company mentioned many times in many different contexts before they respond to any marketing effort. I worry that display advertising is being undervalued because it does not necessarily produce the most click throughs.

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