The Dot Com Era is Back
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The Dot Com Era is Back
Summary
A recent article titled "Internet Use Threatens to Overtake TV in Canada" highlights how online marketing is encroaching upon traditional media in Canada. In the U.S., this shift is already a reality.
Article
In a recent exploration, "Internet Use Threatens to Overtake TV in Canada," the discussion centers on how online marketing is challenging traditional media in Canada. This shift is no longer a threat in the U.S.; it's already a fact.
According to Thomas Mucha from Business 2.0, people are now spending more time online than watching TV. This trend gives marketers a prime opportunity to reach consumers who are just a click away from making a purchase. Jupiter Research senior analyst Gary Stein reports that over 75% of companies advertising online are confident in their return on investment. This confidence is expected to maintain momentum across key online ad spaces, such as paid search, display ads, classified ads, and rich media.
Interestingly, two studies show similar findings. The Ipsos Reid study in Canada notes that radio is losing more ground than TV, but it might soon see a decline due to the Internet as well.
Mucha predicts that by 2010, 40% of advertising spend, amounting to $19 billion annually, will be on platforms like Google, Yahoo, and MSN. It's no wonder these search engines are battling for dominance; the most popular will inevitably become the most profitable.
What does this mean for smaller businesses? Will they be priced out of buying keywords for ad placements? Possibly not, but let's be realistic. If a giant like GM wants to use the same keywords as a small business, can the latter afford to compete? Search engines will profit enormously, and the cost per click will rise, much like the price of gasoline.
Despite the rising costs, major search engines will still need to index relevant websites. Professional sites will always be favored over link farms, affiliate sites, or spam. Businesses should build their websites promptly to secure their place. Google's current dominance means that new sites may end up "sandboxed" temporarily, affecting their visibility.
At the recent Search Engine Strategies conference in San Jose, California, Rand Fishkin discovered that Google places new websites in a "probationary category" for six months to a year. This allows time to assess user interaction and external links.
As a word of caution, some predict that Yahoo or MSN may adopt similar strategies to combat spam. This could challenge new SEO efforts and campaigns. Fishkin recommends not dismissing this possibility and suggests launching projects or promotional efforts quickly. While the web is still relatively accommodating to new sites, it will become increasingly competitive.
Though it seems like the "Dot Com era is back," this time will be different. The early 2000s bust was partly due to insufficient online consumer activity to justify spending. However, things have changed. Jupiter's study reveals that 73% of American Internet users have made online purchases, and four out of five have responded to online ads.
You can find the original non-AI version of this article here: The Dot Com Era is Back.
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