Move over brand advertising, there’s a new boss in town- performance based advertising. According to a report entitled “Nothing but Net” by JP Morgan, performance based advertising has grown faster than projected over the past 5 years leaving brand advertising, and old favorites such as online video and social networks in the dust.
The report projects that brands will continue to take a tougher ROI approach in response to the current economic recession, and as a result, more accountable forms of advertising such as search and other performance based programs will continue to gain traction. In fact, JP Morgan predicts that performance based search advertising will grow over 10% in 2009 (to almost $16 billion), while other forms of advertising will grow at the much smaller rate of 6.3% (almost $8.4 billion).
When times are tough, advertisers are less willing to take risks with their advertising- budget. Performance-based advertising ensures that every dollar delivered hits it’s mark.