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August 27, 2012

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Here's the The Lowdown from DN Journal,
updated daily
to fill you in on the latest buzz going around the domain name industry. 

The Lowdown is compiled by DN Journal Editor & Publisher Ron Jackson.

Do You Run a Popular Advertiser Supported Website? A Flood of Money May be Coming Your Way

It is no secret that more and more advertisers are chasing eyeballs that have moved to the web by spending a bigger percentage of their ad budgets online, but you may not be aware of just how large the tsunami coming our way is likely to be. Gavin O'Malley shed some light on that subject with some interesting stats he shared in an article at Online Media Daily this week. 

O'Malley's piece cited the latest research from local media experts BIA/Kelsey into the ad spending plans of SMBs (small to medium sized businesses), a segment that makes up 70% of the U.S. economy. In 2010 SMBs spent 52% of their advertising money with traditional offline media outlets. Near the end of 2011, BIA/Kelsey forecast that number will shrink to just 30% by 2015 (a scant three years from now).

O'Malley noted, "That would leave 70% of those dollars for digital and online media, including mobile, social, online directories, online display and digital outdoor; performance-based commerce, including pay-per-click, deals, and couponing; and customer retention business solutions, including email, reputation and presence management."

Image: jannoon028 / FreeDigitalPhotos.net

What does that translate to in cash? BA/Kelsey predicts total SMB ad spending in the U.S. will reach $40.2 billion by 2015, a huge increase from the $22.4 billion logged in 2010. That works out to a double digit compound annual growth rate of 12% - a figure few sectors of the economy could hope to measure up to. 

While those eye-popping figures are a forecast for three years out, the race has already begun. BIA/Kelsey said respondents to their SMB surveys indicated that 26% of all SMB ad spending will go to digital and online media this year. If you haven't developed one of your favorite domains, how much more incentive do you need?

Image: photostock / FreeDigitalPhotos.net

 

Certainly development is not easy and, like anything else, there is no guarantee of success. But one thing is a certainty, you can't win  if you don't get on the field. Pick a topic you are passionate about - one that you would love to share with others who have similar interests. If they start coming to your website for news, information and advice, you will have a community that the advertisers who offer relevant products and services will want to reach. 

If you can achieve some success in web publishing as thousands of others have, you'll no longer have to live and die with what direction parking is headed, or whether or not someone shows up to buy one of your domains this week. If you try it and it doesn't work, you are no worse off than you are now so what are you waiting for?

(Posted March 1, 2012)


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