Posts Tagged ‘Performance-based media’

You must make the move to measurable media today

Thursday, October 16th, 2008

With the economy in the tank, there are a lot of people who are understandably worried about their businesses and their jobs. Companies that rely on marketing for revenue are especially concerned; historically, marketing budgets are among the first to be cut when there is a downturn. In the dotcom bust early this century, the slicing of marketing budgets directly contributed to the demise of several publications, including one that I worked for at the time.

I have said this before, and I will say it again now – if you are a media company that relies on advertising for revenue, you need to start offering a performance-based, ROI-based media option today.

If you don’t believe me, let’s look to someone who knows something about online advertising – Google CEO Eric Schmidt. Google just announced their earnings for the third quarter of 2008, and in the press release, Schmidt said this:

“The measurability and ROI of search-based advertising remain key assets for Google.”

Measurablility and ROI-based marketing programs are what are going to be the key assets to get Google through the hard time. I say, why not follow the leader?

The markets are down (again) so let’s talk about marketing instead

Wednesday, October 8th, 2008

My latest article has just been posted on The Industry StandardFive ways media companies can take advantage of the shift to performance-based media.

New dollar billWith the markets down 30% year-to-date and nations around the world joining the U.S. in an economic downward spiral, it might feel like anything related to the economy or spending money is bad news. But there are bright sides to any situation if you look at it from a different perspective, and this situation is no exception.

When the economy dips, and companies take a hit, one of their first budgets to be cut is often the marketing budget. Marketing can feel like unnecessary spending for businesses, and it’s easy to cut one month and then quickly pick up the next month again when the company is doing better.

During the dotcom bust of the early 2000’s, I was working for Publish magazine, a trade magazine/Website focused on “Internet communication.” That magazine, like many others (including The industry Standard) folded due to the bad economy and the cut that IT companies were making to their marketing budgets.

But those were the days before performance-based media. Google, the leader (and pioneer) of PPC and performance-based advertising, launched its AdSense program in October 2000, but it didn’t gain traction until 2002. At that time, marketing budgets were easy to cut because marketing execs couldn’t prove ROI on the money they were spending. But today, when $1 out is easily measured to x dollars back, I believe that companies that provide performance-based advertising options will be insulated (a bit) from the downturn.

This isn’t to say that companies will be entirely shielded. But when some amount of revenue is easily tied back to a smaller amount of spending, companies will not be inclined to cut that spending.

Dollar bill by reubenaingber