Advertising’s redheaded stepchild gains legitimacy
I just got back from Ad:Tech New York, the show for interactive advertising and technology (one of the reasons I haven’t blogged in a while.) It strikes me that online advertising in all its forms – affiliate marketing, lead generation, search engine marketing etc – is still viewed by many as the redheaded stepchild of the advertising world. It’s certainly not as glamorous as other parts of the industry and the abuse of pay per click advertising has been widely publicized. Nevertheless, it is big business and is rapidly shaking off its early shady image.
13,000 people crammed into the three exhibition halls and conference at Ad:Tech New York. According to Marketing Sherpa, affiliate marketing alone generates $6.5 billion in revenue in the U.S. and drives 10% of all traffic to ecommerce sites. These days, affiliate marketing has mostly moved to a pay per result model and is increasingly viewed as a great way for companies to go global without a physical presence in every country around the world. Looking to the future, the talk at Ad:Tech was about consumer-generated media, video and mobile. For warts-and-all coverage of the show, check out its official blog. Other good sources include ClickZ, adotas, Revenue magazine and Shawn Collins’ Affiliate Tip blog.
Right now, online advertising still represents a mere 4-6% of overall ad budgets, but it’s a pretty safe bet that this figure will rise significantly in the near future.