Advertising dollars have become a precious commodity as of late. More and more companies are cutting their advertising budgets in response to sinking global economy. You don’t have to look very far in the news reports to see that all facets of advertising media have been taking a significant hit in the purse strings especially in the year 2008. The companies that are taking the biggest hits when it comes to advertising dollars being spent on their services is that of the traditional media outlets, like newspapers and magazines.
For example one of the biggest names in traditional advertising the New York Times reported a huge 51% percent loss in advertising dollars over the same time frame last year. That my friend is a huge cut in profit for one of the biggest newspapers in the world in one of the biggest cities in the world. If the NY Time is seeing over a 50% cut in advertising dollars imagine what is happening to the smaller newspapers and magazines where the advertising dollar is what keep the company a float.
Traditional forms of advertising are not the only place where advertising dollars are being cut back. Online advertising budgets are also seeing a significant decrease in spending as well. Advertising online though has a few advantages over traditional ads that will help to keep online publishers in a better position over their off-line counterparts. The main advantage that online advertising has is the analytical tracking of any advertising campaign that can give advertisers immediate feed back as to how their advertising dollars are
being spent and how effective their campaigns are.
The result of all these cutbacks are that you are actually seeing increases in online advertising budgets being planned to get some results to offset the cutbacks that are being felt by the loss of traditional advertising sales. I know that a lot of online publishers are posting comments and articles of how their impressions are holding steady but the incoming money has decreased for some by as much as 20%. I think this will be more of a temporary set back as more advertisers restructure their budgets for the upcoming year with more dollars being directed to online business in an effort to be more cost effective.
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