With the news that traditional media companies are increasing their share of online advertising dollars, it may make some online marketers a little nervous. To me, it's good news. The reason why is that in certain demographic groups, they slower to adapt new ways of doing things. With the traditional media companies partaking in some of the Internet ad dollars, it adds more credibility to the overall online marketing scene.
This doesn't mean that I feel that it adds any credibility, only that among some groups it does - which is good for online business overall.
James Rutherfurd, managing director at VSS, said: “There has been a lot of handwringing about media companies not making any money in the online world but what the data show is that their position is better than we would have assumed. Traditional media firms have worked hard at finding ways to extend their reach online, and this is paying off.”
By the year 2010, the combination of internet and mobile advertising is projected to be around $44 billion, of that the traditional companies are expected to garner around 39 percent of that, or $17 billion.
Whether this is actually taking away business from online marketers is a question that needs to be answered. My thought at this time is that the larger companies are creating some of their own online markets by getting their existing offline customers to migrate to their online offerings. This makes the advertising dollar pie larger and also increases the percentages of the big companies.
At this time I don't think this is hurting the online marketer at all.
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