August 31, 2007

"Do yourself a favor and don't worry about online advertising."

Internet advertising spending was a measly 6.5% of all advertising spending in the year 2006. That's 37% less than television advertising, and 14% less than magazine advertising.*

While internet advertising is still a fairly new advertising media, it's quickly becoming the next billboard market of advertising. Do yourself a favor and don't worry about online advertising.

Billboards were first spotted in 1835 to advertise for the traveling circus.** In the 1900s billboards gained popularity among advertisers and were often used for war support advertisements. Now, in the year 2007, billboards are literally everywhere. You can't even drive across the desert without seeing several billboards advertising services you will most likely never use.

Despite the fact that billboards are scattered everywhere, their rate of usefulness is dramatically declining. Only three-million dollars was spent on outdoor billboard advertising in 2006.* Three million dollars is chump change in the world of advertising.

Internet advertising is quickly following in the steps of billboard advertising. While it was popular in the early years of 2000, online advertising is becoming more of a nuisance than a successful way to advertise products or services.

So what does this all have to do with you?

Well, if you're an advertiser: it's time to start thinking of different ways to advertise online. The typical pop-up and banner ad are going to lose focus within a few years. Reviews on blogs and news sites are going to become the new online advertising. Selling your services through third-parties is going to guarantee you a lot of sales.

If you're not an advertiser, but are looking into online advertising: take your time. Buying ad space or online links is only going to make your wallet smaller and your website traffic even smaller. Again, reviews on blogs and posts on news sites are what's going to make you money. Not banner ads.

If you're not an advertiser at all: watch out for online advertisements. There are a lot of ways to avoid advertising (the browser Firefox has a plug-in to remove all advertisements on a webpage) and you are fully entitled to ignore online advertisements through plug-ins and such - we all ignore billboards while driving to and from work, admit it.

Everyone can make money with the future of online advertising. As it is now: popups and banner ads are on their way out. Blog posts, news reports, and social media sites such as Digg, are the online advertising of the future. Advertisers can advertise through great product reviews, and bloggers and webmasters can make money by offering to review products.

The future of online advertising through blogs and news sites is a win-win for everybody. But only if you get started right now. Avoid cheesy banner ads and other internet advertising campaigns. Make real money through the future of online advertising: the network.