Devoted to online marketing, viral marketing, and web marketing

3 Reasons Why Ad Spending is Growing on Portals

We've been talking about the reason why people visit portals, now let's take some time to understand why companies in general prefer to market on them so strongly.

There's probably three main reasons why they're the primary online advertising vehicles at this time.

1. The first reason is the familiarity of larger marketers with mass or scale. They still look upon media as "mass," even though it really hasn't been for decades. But the idea of a place that gets a certain amount of people visiting it is still a huge appeal to many marketers. And if they're selling general items that the majority of people use, this probably isn't a bad idea - although it's still casting out a big net to catch a few fish.

2. Second, all of these portals have been around for a long enough time to generate trust in those using them. They all have long enough records to know what pattern and content the products or services of companies will end up next to. What may be surprising to some is that Google (GOOG) is the newest kid on this particular portal block, as far as the 4 majors are concerned.

3. Last, it's still all about safety online. While certain types of products will be advertised on social networking sites, many marketers are still leary about what their offerings could possibly end up being next to. It's a legitimate concern that some online sites have been very slow to respond to. The result has been that companies have been looking for very specific trusted sites they believe they can work with.

For these major reasons, online ad dollars will continually to grow for a season of time. Like we've also been talking about, while growth is slowing down to these sites, it hasn't come to its peak yet, and until it does peak, we'll probably see the portals doing good ad business for a few years yet.

Next post we'll talk about what all of this will mean to online marketers.