At last: poor-value online advertising starts to decline

Figures from the US for 2016 show that online advertising spending continues to rise, although the rate of growth is slowing. If trends continue, it may even be about to reach a ceiling. Look behind the figures however and we find that Facebook and Google both continue their relentless rise, but taking out these two, online advertising spending everywhere else has already peaked and is now falling!

I’m sure you can work out why. Facebook and Google not only have brilliant advertising offerings, but in most sectors, the opportunity is more than most advertisers have budgets for. So all the budgets available are being diverted to the advertising platforms which can be demonstrated to work.

I look at some websites (particularly from traditional print publishers) and still see old-school ‘ratecards’, saying: “put your ad here for £XXX a month”. No effort on their part. No guarantees of response. Who on earth would throw any money at that when they could be spending it on pay-per-click, response-guaranteed advertising?