The Dot Com Era is Back
Below is a MRR and PLR article in category Product Reviews -> subcategory Other.
The Dot Com Era Returns
Overview
A recent article titled "Internet Use Threatens to Overtake TV in Canada" highlights the growing influence of online marketing over traditional media in Canada. While this seems imminent for Canada, in the U.S., digital dominance is already a fact.
Online Versus Traditional Media
According to Thomas Mucha from Business 2.0, people are spending more time online than watching TV. This shift provides marketers a direct pathway to consumers, who are just a click away from making purchases. Jupiter Research senior analyst Gary Stein notes that over 75% of companies advertising online feel confident in their return on investment. This trust propels spending in key online ad areas: paid search, display ads, classified ads, and rich media.
While the Ipsos Reid study in Canada suggests that radio is losing ground faster than TV, the Internet is poised to claim the lead soon.
Digital Advertising Spend
Mucha foresees that by 2010, 40% of advertising expenditure will be focused on platforms like Google, Yahoo, and MSN, reaching an estimated $19 billion annually. It's no wonder that these search engines are fiercely competing to dominate the market. Whichever becomes the most popular will generate the highest revenue.
Impact on Smaller Businesses
What does this mean for smaller businesses? Could big companies overshadow them in keyword bidding for search adverts? While small businesses are not entirely without hope, they must grapple with reality. Competing against giants like GM for keywords might be unaffordable. As a result, the cost per click is expected to escalate, much like the rising gas prices.
Despite increasing costs, search engines will continue to index relevant websites. Professional sites (in contrast to spammy link farms) will generally perform well. Businesses need to establish their online presence sooner rather than later. Google, currently leading the search engine market, often places new sites in a “sandbox,” a temporary probationary status to monitor user reactions and link quality.
Insights from the Industry
At the recent Search Engine Strategies conference in San Jose, California, Rand Fishkin revealed that Google temporarily categorizes new websites to assess their merit. This could last from six months to a year.
Fishkin advises that platforms like Yahoo! or MSN might adopt similar strategies to combat spam, which could affect new SEO and marketing efforts. He recommends launching projects or at least setting up holding sites as soon as possible, as the web environment will grow more competitive and less forgiving with time.
Conclusion
While there are echoes of the early Dot Com era, this resurgence is distinct. The crash in 2000 was partly due to insufficient online consumer confidence. However, the landscape has changed. Jupiter's study indicates that 73% of American Internet users have made an online purchase, with four out of five responding to online ads. The confidence and convenience of digital marketing promise a different and more sustainable era.
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