As reported in the NYPost, Web advertisers are spreading their online ad dollars across more sites and are paying lower rates in many cases... this is a total no-brainer. if you have more places where companies can put more ads, the premium ad places are going to be adversely affected. and, with all the talk of the importance of the long tail, the long tail may be loooking like the most desirable place to put lots of cheap ads to reach lots of specialized niches vs. spending big money on an big ad in a broad niche. If you, the ad buyer, thinks the specialized niches will target your market better, you'll go for the specialized niche--and the cheapness of the niches makes them a better bang for a company's buck...
It used to be that if an advertiser wanted to reach a lot of potential car buyers, their options were limited to buying the homepage of a portal like Yahoo! or a car review site like Edmunds. com.
Now, technology has made it easier to deliver ads to the right person at the right time across a multitude of Web sites.
Ad networks, for instance, aggregate Web publishers and allow advertisers to buy ads on hundreds of sites and target users based on location and other characteristics. There are also ad exchanges that automatically pair buyers with sellers.
Both give advertisers easy access to tons of cheap ad inventory that might otherwise have gone unsold.
"Advertisers have shown a willingness to embrace ad exchanges and ad networks offering inventory at lower rates," said Darren Chervitz, an analyst for the Jacob Internet Fund.
So, what can we expect? More and more little ads in more and more places--and most newspapers/magazines/portals/people making significantly less from their ads than they did in the past. The whole idea of supporting a site (website/blog/whatever) with ads will become even more of a ridiculous idea than it has been. Sites will be so ad-loaded that they will become even more difficult to read (not to mention load on anything but broadband.)
The Financial Times reports on the rise of online ads over newspaper ads, thus even more bad news for the newspaper industry.
Broadcast television and cable and satellite television combined will continue to take the biggest share of advertising dollars, and are forecast to reach $86bn in 2011. “The path of online advertising and newspaper advertising is a continuation of what we’ve been observing for many years, but it is finally getting to the point where the lines will cross,” said James Rutherfurd, managing director at VSS
Not just lines crossing, but, perhaps, reaching critical mass to where no outlet can afford to support itself via ads alone.