Saturday, 18 October 2008

DIGITAL MEDIA PROSPERS IN CREDIT CRUNCH BY DOING ITS MATHS


Yesterday's Financial Times reported that "Google's share price soared yesterday, rallying 25 per cent from its low point of the day, as the Internet search company's latest quarterly earnings proved resistant to the wider downturn in advertising markets".

Eric Schmidt, Google CEO, was also quoted as saying "As marketing budgets are being squeezed, targeted ads [and I'd add pay per click business models] are becoming more valuable to advertisers"

Digital advertising growth might slow from its lightning pace, but its still growing. I've also started to see some more evidence of channel shift from traditional media into digital. This could be a double-edged gift for some digital marketers and their agencies if they don't invest in metrics, analytics, and optimisation. The boutique creative approach wins awards, but its yet to prove it can win brands new customers. A unified theory of advertising embraces both leading edge creative and rigorous analytics and optimisation - that's how you get results.

It's not a victory of the engineers over the artist, but a need for them to come together. So a Google-like focus on analytics and optimisation is now more important than ever before across all areas of the digital business.

3 comments:

Anonymous said...

I think the credit crunch will be hard for everyone. Even Google will suffer a little

Saul said...
This comment has been removed by the author.
Saul said...

It just goes to show how little City folk and marketers know about advertising that Google’s “share price soared” because “targeted ads are becoming more valuable to advertisers". Well, it takes more than a barrage of online ads to launch or maintain a brand. Contrary to what the great and the good think, Google’s products are not quick, cheap fixes to all marketing ills…