A Watershed Event

By Herb

According to the Economist, Advertising Age is predicting that the combined advertising revenues of Google and Yahoo! will “rival” the combined prime-time ad revenues of America’s three big television networks, ABC, CBS and NBC. This is just another indication of the importance of the Internet as an advertising medium. One caveat: while this is great news for the providers and their shareholders it means that potential advertisers have to become even smarter and more effective in implementing their ad campaigns. Clearly with the demand for advertising (i.e. keywords) escalating but the supply remaining relatively static we can expect that prices will continue to be bid up. Campaigns will become less cost-effective unless they are designed and managed carefully. Let’s hope that Micorosoft gets their search engine PPC platform launched quickly so that there is an increased supply of keywords.