Saturday, June 6, 2009

Advertising Deflation

It's an article of faith in advertising circles that advertising revenue grows at least as fast as GDP - but what if that's wrong? The whole promise of online advertising is that it allows for more efficient, targeted ad spending compared to "wasteful" traditional media. if that is true, then there will be a time when adspend probably shrinks compared to GDP.

regardless, though, right now GDP is shrinking and so is all adspend, not least online adspend which is down 5%.

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