Welcome to the Watershed

Wednesday, January 3, 2007
Posted by Jim Hedger @ 1:10 pm

Welcome to 2007 friends. From the look of things, this is going to be an interesting and transformative year affecting all facets of the communication industries. This is the year that the money makes all the difference.

There is a wash of “new money” entering the Internet economy. Fresh funds are flowing in from what is euphemistically called the traditional media. Newspapers, radio and network television are losing their audience and the advertising dollars they attract to the Internet. Similarly, consumers are spending more money on video games than they are on viewing first-run movies. Hollywood is hopelessly out-entertained by video games that virtually place players in environments that are often far more extreme than even the most violent of movies. While this shift is anything but new news, 2007 is the watershed year for members of the traditional media.

The redirection of billions of advertising dollars is creating a cascading effect both on and off the ‘net. The business of providing entertainment and information is undergoing its most radical change since the dawn of the television age. We are entering the watershed year. This is the year more advertising money is spent in the digital world than is spent on the traditional media.

For search engine marketers, this shift is going to present a number of incredible opportunities along with a number of difficult challenges. Search plays an integral role in how Internet users access digital information and entertainment. Search engine marketers are increasingly going to act as guides and agents for their clients, helping them obtain and present compelling content to compete with similar businesses for sales, or helping them find the most useful online advertising venues.

Advertisers like having a good idea where their advertising dollars are being spent. Most small businesses are comfortable placing their own Yellow Pages advertising, for instance, because they fully understand the concept. Similarly, most people are comfortable writing and taking out their own classified ads in newspapers and magazines. Most companies are also comfortable placing their own graphic advertising in newspapers.

As advertising venues become more complicated, the advertisers have to turn to professionals to create and distribute their ads to the proper venues at the proper times and to the proper audience. While very few advertisers produce their own television commercials or radio spots, most have a rough idea how the TV and radio ratings systems work. They might not have the skills or equipment to produce the advertising content or to negotiate the best placement of that content but they do have a rough idea how to rate the distribution system.

When it comes to online advertising however, the true scope of the marketplace is just now coming into focus. More than ever before, online advertisers require the knowledge and skills of professional online marketers. As search is the gateway to the Internet for most users, search marketers are seen as the chief niche in the emerging online marketing industry. Welcome to the next great watershed. It is going to be an interesting year.

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