There are a number of factors that lead us to believe that there is significant growth ahead for the internet advertising sector. Some of these factors include:
Worldwide Internet penetration continues to rise.
Newspaper and magazine businesses continue to lose ad market share while dependence on mobile and Internet use increases.
Failure of newspapers to manage their existing cost structure, making their business model unsustainable in the future.
Increased dependence on the Internet medium for breaking news.
Emergence of blogs as a trusted news source and opinion provider.
Growing broadband penetration is a catalyst for more robust commercial Internet activity.
Growth of online retail is closely related to increasing broadband penetration.
Over the past five years, performance-based advertising has gained market share over the CPM based model.
Advertisers placing higher value on clear ROIs; hence, a shift to performance-based models is likely to accelerate in this recessionary environment.
Brick & Mortar retail bankruptcies, and especially store closings, should lead to pricing pressure, and thus margins pressure on the survivors in both online and offline retail.
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