Friday, 16 May 2008

Threat of recession drives search advertising

Google has said that the company is witnessing a "significant inflow" of advertising spend from companies who are moving their budgets from mainstream 'above the line' media into more targeted and measurable forms of marketing like PPC advertising.

As reported by The Sydney Morning Herald, there are mixed reports about how the threat of a recession is affecting companies, but this trend does seem to indicate concerns from companies who want to make the most of their advertising spend when budgets are being tightened, either in response or anticipation of a market downturn. In light of this trend, the reported 30% growth in search advertising in Australia for the March quarter could be significantly underestimated.

At the same time as this continued growth in Internet advertising continues, another article in the SMH claims that, dollar for dollar, the Internet accounts for more carbon emissions than any other form of advertising. A study by consultancy P3 estimated the environmental cost of different forms of advertising and claimed that Internet advertising is the equivalent of junk mail, with high levels of water generated by large numbers of page impressions.

Perhaps this is good publicity for the green auditing division of the company publishing the research but it also raises many questions about the methodology of the research.

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