Online Advertising in 2006

Marcel Reichart asks how big the german online advertising market will be in 2006, citing a post by John Battelle that talks about a 32% increase in the US.

Interesting question that is, but I think one thing is important to note in relation to where the growth will come from. Some part of it will obviously be from bigger companies, but a lot of that will go the route of performance marketing budgets, not standard CPM bookings. There will be more creative solutions and more measured ones as this is just what is possible on the internet. A good part of the growth will come from new entrants in the advertising space though, again enabled by the internet allowing for new markets to be built and allowing for syndication and aggregation. This is the game we are playing with Ormigo. Enabling new players to enter this market is also what fueled a lot of growth with Google and the like. Suddenly Joe from around the corner can advertise, and sometimes even profitably. All this space will become more professional, and there will be more competition and the local players will have to improve how they manage things. It’s an interesting time to be in advertising as things are changing rapidly and accountability is increasing. Online advertising is sales they say, and I’d extend that to internet connected advertising, or advertising with a live backchannel is sales.

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