1/7/09

2009 CPCs Up and CPMs Flat

Happy New Year!

Let's start the year off by talking forecasts... Media Post published an article today that discusses digital spending forecasts for 2009.

Overall several media are feeling the downturn in the economy, but various interactive spend forecasts still say 2009 will remain relatively strong. This is no surprise given digital's accountability and ability to segment out the optimum audience. The medium has become even more attractive given the current climate and as a result some dollars are shifting from non-digital media to digital.

This means that where other media are able to cut deals, it is a bit of a different story when it comes to an online buy.
  • Search will remain the strongest due to its ability to capture those seeking to find your product (higher demand = higher bidding).
  • Display will likely see some shrinkage in demand but CPMs will remain somewhat flat.

That being said search, "which captures the lowest hanging fruit," still needs promotional media to help increase search enquiries. As such, TG Madison recommends a targeted mix of display, WOM and search tactics for many of it's clients.

So what does this mean immediately for 2009?

  • Bid based campaigns will need to be monitored more closely to ensure that spend levels are adequate for the desired visibility.
  • Online commitments will need to begin earlier than in previous years as inventory in certain, high profile, highly relevant areas may become tighter more quickly.
  • Consumers will need to clearly see the difference between your offering and your competitors as its likely that your ads may run side-by-side (i.e. - Search).

Get ready for an interesting year, guys! Its going to be a bumpy ride!

No comments:

Post a Comment