Online Companies Provide ‘Role Model’ In Difficult Economy, Says Myers
US online advertising is forecast to grow by 12% in 2002, to $5.3 billion, according to Myers Reports data compiled in August. Online joins local cable advertising as the only two media that are now expected to increase “in a year that is now shaping up to be even worse than 2001.”
In a further call to investors to back companies making longer-term investments and strategies (see Forecasts), Myers asks the investment community to “recognise solid performers and reward their long-term viability and to stop throwing out the babies with the bath water.”
Companies like AOL, iVillage, eBay, Advertising.com, Overture.com (GoTo.com), iWon.com, Amazon.com and the sites of major media brands such as Discovery, CNN and ESPN are out-performing the market and delivering definitive and measurable marketing value, he says.
“The online medium is providing a role model for how to survive the economic downturn by building new business models and restructuring to adapt to market conditions,” says the report. It is up to the markets and their investors to support this, says Jack Myers.
| Online Advertising Spending Forecasts, 1998 – 2006 | |||
| Growth | $ (in millions) | % Share | |
| 1998 | n/a | 1,500 | 0.9 |
| 1999 | 60.0 | 2,400 | 1.3 |
| 2000 | 79.2 | 4,300 | 2.1 |
| 2001 | 10.0 | 4,730 | 2.4 |
| 2002 | 12.0 | 5,298 | 2.7 |
| 2003 | 15.0 | 6,092 | 3.2 |
| 2004 | 20.0 | 7,311 | 3.7 |
| 2005 | 15.0 | 8,407 | 4.2 |
| 2006 | 18.0 | 9,921 | 4.9 |
| Source: Jack Myers, LLC, August 2001. | |||
