Is the Advertising Boom Sustainable?

[engine]

During the dot-com boom, more than a few Internet start-ups planned to support free Internet services--and theoretically turn a profit--by selling online advertisements. Needless to say, for many it didn't work. Now a new group of companies, ranging from tech giants to the tiniest of Silicon Alley start-ups, are banking on ad sales to support new Net services. Microsoft, for one, is pushing full-on into advertising with its Windows Live platform, which will offer Internet-based services like e-mail, blogging and instant messaging that are supported by ads and some subscriptions.

Sounds like the bad old days? Not at all, say industry experts. With new ad-tracking technologies and proven ad buyers like Procter & Gamble and Ford Motor leading the way, analysts believe there's a maturity and reliability to this ad boom that was sorely missing during the Internet bubble.

How deep is the online-ad well? [news.com.com]

I'm sure we're going to see some consolidation coming through as the excitement and hype has an effect on the low end of the market.

I'm also seeing some contextual advertising search terms in saturation. If the market is so buoyant, that makes me think about what's going to be next.

[Essex_boy]

Hmm there are a lot of things that are difffrent from yesterday, today.

For one way back when C2000 AD youd have to be either promoting adult sites or very lucky to get the sort of clcik payments you get from Google now.

So I think its easier to support this line of business now than then, however your going to need a lot of Advert clicks to get anywhere. Nice Idea, but I think its going to fail maybe not so massivly but boy its going to be hard.

[BriGuy20]

I think it's closer to the end of the proverbial s-curve than the beginning, but I still think there's a fair amount of growth left (and I'm talking about developed countries here). I think the next big bonanza will be the developing countries, the thought of billions of potential consumers would make any marketer worth his salt salivate.

[TheDonster]

I'm interested in seeing how Google's plan to provide free wi-fi service turns out. They've registered patents to provide wi-fi free of charge which will display advertising of course. This may be where the future of the internet is leading. How deep is the well? Only as deep as advertiser's pockets. As long as the people paying for the ads are seeing a good return on investment, the potential to make money on web sites will be there.

[iamlost]

The 2000 burst web bubble was based on stock prices and hype. The current web (non-ecommerce) revenue is solidly advertising/marketing grounded. The web has barely touched this traditional economic engine. Lots and lots (and lots) of growth potential remaining. A good site can better target a given market audience than any MSM delivery vehicle as ad agencies (and their clients) are learning rapidly.

IT 'developed' world:
* Current agency spend remains largely with traditional media. Until this spend tops 50% I expect typical web ad formats to continue their rapid growth. Most of what we see in web ads now is not agency spend. I expect about 5-years to plateau in this genre, largely impacting print media.

* Streaming media is the next big ad venue. Product placement, ads-as-entertainment, celebrity endorsement clips, etc. will suck away TV ad money from marginal shows (initially) to targeted sites. Bandwidth continues to be the stumbling block but it is wearing away and the next 10-years will bring very big opportunities (individual multi-million dollar deals) to properly positioned sites.

IT 'developing' world:
* the shear 'viewer' numbers are staggering. A good 20-years of growth as they 'catch-up' to enjoy our ad saturated cultural advantage.

* lots of costs and a steep learning curve to those from outside each language/cultural group but the potential profit is enormous.

Unless the world economy tanks.

But then the web might just be the most economical communication (and ad) vehicle...and MSM just might have gone the way of the dodo...and my marketing (web) vehicles just might still be profitable...in whatever coinage is then mutually acceptable...