Internet Advertising- Performance Driven Model
The Internet Is More and More a Performance-driven Model
Over the last five years, performance-based advertising has gained market share over
the CPM-based model. This trend is most clearly seen in the U.K., where the online
ad market is more mature (~15% of ad dollars are spent online compared to only
~8% in the U.S.). In the U.K. market, we think roughly 85% of total online ad dollars
are spent on the performance-based model.
For our international forecast, we expect two main drivers to impact eCommerce
growth: (a) a very weak consumer outlook, with historically low consumer
confidence in parts of the world, including the UK, and (b) continued shift of wallet
share from offline retailers to online sellers.
JP Morgan -
Global Equity Research
05 January 2009
Posted in Internet Advertising, Internet Marketing, Pay For Performance, Pay Per Click, SEM, Search Engine Marketing |
