Comments on: How The Plunging Financial Markets Will Impact Ad Spending http://paidcontent.org/2011/08/05/419-with-negativity-built-in-ad-spend-outlook-doesnt-look-worse-yet/ The economics of digital content Wed, 19 Jun 2013 00:19:46 +0000 hourly 1 http://wordpress.com/ By: Peter Tarr http://paidcontent.org/2011/08/05/419-with-negativity-built-in-ad-spend-outlook-doesnt-look-worse-yet/#comment-84802 Tue, 30 Aug 2011 20:02:29 +0000 http://paidcontent.wp.gostage.it/2011/08/05/419-with-negativity-built-in-ad-spend-outlook-doesnt-look-worse-yet/#comment-84802 Thanks
for this article, David. In addition to Magna’s findings that you mentioned, I
also saw recent research from the Interactive Advertising Bureau and
PricewaterhouseCoopers that says spending for online advertising will grow to
$28.5 billion this year and will exceed $40 billion in 2014. One of the reasons
for such an increase could be attributed to the various new payment
alternatives, such as Cost-per Action (CPA), to traditional ad models. Given that CPA guarantees an ROI, this model may be a
very effective solution for advertisers who want to ensure that they can
extract value from their invested capital in uncertain economic times. With
a CPA model, advertisers can be sure their ads are reaching a targeted audience
and they only pay when a consumer has successfully interacted with their ads. When a person visits a website they
complete a brief advertiser-sponsored survey, quiz, game or offer before they
are able to view content. Each time a user interacts with an ad, the advertiser
pays a fee, but this is much less
expensive than the costs of traditional advertising in print, TV, etc. It’s an
effective strategy for advertisers to explore so that they don’t lose potential
customers during financial downturns.

 

Peter
Tarr, Chief Global Strategist, CPAlead 

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