When budgets are tight, advertisers tend to look for proven methods, such as ads placed alongside a Google or Yahoo search, and place less empasis on experimental venues, such as social networks, experts say. “Mobile and social networks will be hit,” Fradin says. It’s harder to prove that ads placed on a social network or embedded in a video are effective in luring Web surfers to a site or enticing them to make a purchase.
Matt Sanchez, CEO of online video advertising network Video Egg, says he expects growth to slow in the coming 12 months. He expects that some smaller, less well-funded video ad and ad targeting firms will have difficulty sustaining their businesses. “The next 12 months will be tough,” he says.
“In difficult economic times, marketers and advertisers want to have real measurement of the dollars they are spending,” says David Doty, senior vice-president of marketing at the Interactive Advertising Bureau.
Executives at Unilever, one of the most active online marketing brands, say they will not cut back on online spending, even with such new ad formats as Web video and online games. “We are not pulling in the reins at all,” says Keith Bobier, Unilever’s senior director of marketing. “There is nothing experimental about this for us.”
But the feeling among many Web advertising firms is that Unilever is the exception to the rule. Many other marketers still see portions of their online ad budgets as “experimental.” “If a certain kind of spending hasn’t been in your [advertising] budget for three straight years, you’ll likely cut it when things get tougher,” says Adify’s Fradin. “Anyone who is new will have slow growth.”
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