Is digital display too cheap for its own good?

Research released last week revealed advertisers' increased confidence in online display despite the recession, with the number of ad campaigns rising by 11% in the second quarter of the year compared with the same period in 2008. Nielsen Online, the research company behind the study, said the number of advertisers launching display campaigns jumped 10% to 9,335 (nma 3 September 2009).

Rather late to the game, Nationwide found digital performed strongly during some online display tests, with its ads getting an average viewing time of 39 seconds. Not bad for a trial. But it's concerning that such a prolific TV advertiser has taken so long to see the merits of digital.

There is a rather gloomy factor in all this positive news. Some ad networks, which are a great way to reach an online audience, are offering very cheap rates, with CPMs as low as 10p. Marketers new to the sector, using ad networks for the first time, may get accustomed to such ridiculous rates. When we see an improved economy, will networks still offer cheap-as-chips rates? And if they can't, will budgets shift elsewhere?

Online display is showing its efficiency so isn't it about time your brand moved budget away from less effective advertising?

Published by: Suzanne Bearne

Published 15th September, 2009

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