According to the recently published Yankee Group Research Report, The Cowboys Dance On…and On: 2007 Online Advertising Forecast, online advertising will grow rapidly in the coming year and beyond as the marketplace evolves. The factors driving this continued growth are:
- Increased online audiences
- The development of new types of advertising
- The creation of new publisher business models that help sell interactive advertising
Yankee Group provides some key predictions for the online advertising market, including:
- Search will get bigger before it gets smaller.
- Don’t say good-bye to the “dancing cowboys” animated ads yet. Low cost per thousand (CPM) “dancing cowboys” ads will continue to drive much of the revenue growth even as high-CPM brand advertisers shift their budgets online.
- Privacy will remain a sticking point with users.
- Social networks will merge into the media fabric (though questions remain whether social networks are the cornerstone of digital media or if they are the “better mousetrap” of the ad server business).
Steady growth requires publishers to invest in new technologies, which lead advertisers to test new ad formats and consumers. Formats that work will become more commonplace, ultimately displacing the most popular forms today.More information on Customer Relationsip Management (CRM) can be found at http://www.crmindustry.com/.