Internet web sites, including most blogs, are dependent on advertising to pay the cost of their site and to make a profit on their writings. But with money becoming tight and with economic uncertainties in the news, it seems that there is some doubt as how advertising on the Internet will fair. Some are taking the position that advertising could take a hit as companies cut back on their Internets ads. But is it all doom and gloom? Is the sky falling?
According to one article which states:
But Sly Bailey has a more sinister view of the year. "Remember 1999?," she rather gloomily asked last week’s Association of Online Publishers’ conference. "Well 2009 will be like Groundhog Day. For the lucky we should expect consolidation – and for the less fortunate, failure." The Trinity Mirror boss said she was "firmly of the belief that there will be casualties in the coming months".
She’s not the only senior media figure predicting blood on the digital publishing carpet. Maurice Levy, the chairman and chief executive of Publicis, warned of a second bust as long ago as last November. "Far too many people are building plans based on advertising and they may well be disappointed because there is not enough money for everyone," he said. "It’s exactly the same situation as we saw at the end of the 1990s, when everyone thought that because he had a website he’d get the valuation. Now everyone building a Web 2.0 operation believes he will receive the advertising."
I believe that the American people, as well as people around the world, may cut back on their spending for luxury items. But I also think that many more people may turn to the Internet to do their shopping. With high gas prices, people may want to stay home and order items from the Internet, instead of heading to a brick and mortar store front.
If this comes to pass, than Internet advertising may increase instead of decline, as more folks shop online.
What do you think? Will you be doing more shopping online this holiday season?