2011: Online Advertising Is Growing Exponentially!

The world of internet marketing is booming.  These are good times for internet entrepreneurs.  Recession?  Yea, I’ve heard that we have had a recession in this country for quite some time now.  It’s all over the news.  Funny thing is that I have a hard time acknowledging it.   Everywhere I look in the online direct response industry I see people killing it.  At the past Affiliate Summit, we threw a decadent revelry at the ccBill penthouse.  Our friends rented out Club Excess and ran up a $800k bar tab.  That’s right, an $800k bar tab.   Limelight CRM rented out a sky club and had a top shelf open bar.  Recession?

For TV, Radio, and Print, there’s bigger problems than a recession.  Try disruptive technology:

1.  Tivo, Netflix, Zune, and On Demand are killing TV advertising.

2.  Sirius, Pandora, and iTunes have killed radio advertising.

3.  Print is evaporating at unprecedented rates.  The tectonic shifts in media will ultimately destroy 95% of American major metropolitan newspapers.

I take great satisfaction in this collapse.  The above media gatekeepers had made it nearly impossible for small to medium sized businesses to garnish the media exposure they sought.  Moreover, TV, Radio, and Print had a huge barrier to entry.  A medium sized company could get killed if it made 1 bad move.  Performance was solely up to the advertiser.  i.e. In 2004 I placed a full color ad in Redbook.  It cost us $110,000 and totally flopped.  Had I spent $110,000 with a trusted CPA network, we would have received a guaranteed profit.

The advertisers from TV, Radio, and Print are not just going to disappear.  In fact, they are migrating to the online space.  And they have huge budgets.  Moreover, they have no clue as to what they’re doing.

I’m working with a few TV advertisers right now.  These guys are used to spending 5-10 million dollars a month in advertising.  What they’re not used to is having the ability to almost completely hedge themselves from risk of loss.  Unlike TV, Radio, and Print, the Online Space allows your ad dollars to bring in exact match quantifiable results.  Whether it’s CPM, CPC, or CPA, every single penny you spend allows you to get in front of eyeballs.

These are great times.  Having put in over 10,000 hours in this space, online marketing is second nature to me.   There are dozens of campaigns that are “copy and paste.”  With that model, any advertiser we work with saves years of trials and tribulations, guess work, and testing.  It’s too easy – or at least feels that way nowadays.

Nevertheless, I still spend countless hours each week researching new ways to improve our campaigns – from data monetization to traffic sources.  It’s important to never get complacent when you’re doing well, especially in the online space.  What works today won’t necessarily work a year from now.

Online advertising is growing exponentially.  If you have an offer or want to create an offer, reach out to us and we’ll get you started.  Get in while the gettings good!


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Rich Gorman is an internet entrepreneur. His primary focuses are on direct response offers and SaaS models. When not working Rich enjoys spending time with his family.