How Will Financial Crisis Impact Online Advertising?

The pundits at OMMA are mostly upbeat (see the round up at PaidContent). TNS Media Intelligence’s Brian Wieser, SVP of industry analysis:

“contends that there will be no impact on the industry — at least in the short term. ‘The broader trend of ad dollars shifting into non-measured media marketing and new media will continue. Even given the current turmoil, there’s still room for growth, as more marketers have already begun a steady move to alternative media. So unless you get a scenario where you have a couple retail institutions combining or consumer facing effort, you won’t see an impact. If two retail banks combine, for example, we could still see an uptick in ad spend as the merged companies feel the need to execute a branding campaign. Outside of that, for the financial services firms and publications and agencies that rely on them, a bad year just got worse. But that’s not the whole market.’

I hope he’s right. But chaos across the financial markets is bound to cause nervousness among business people in every sector, and that nervousness will delay advertising start dates, shorten contract commitments, and may temporarily slow down the migration of funds to relatively new channels such as digital.

  1. # Morten E. Wulff said: December 2nd, 2008 at 2:18 am

    @temporarily slow down the migration of funds to relatively new channels such as digital.

    I think your wrong on that one. I think ad dollars – during the financial crisis – will shift faster to addressable and measurable new media than ever before…

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