

The Internet Ad Spending Not-So-Recession - far33d
http://paul.kedrosky.com/archives/2007/09/12/the_internet_ad.html

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bharath
I suspect that an economic downturn if it does come will be good news for
online advertising. Why? Only because there is nothing quite like a downturn
to accelerate efficiency. Last time round, the recession was great news for
Indian IT companies -- simply because it became efficient for American
companies to outsource certain things that they do. Though I dont have figures
to back it up, there are quite a few articles out there that point out that
the following 2 ratios are not the same (which by implication points to an
inefficiency in the allocation of advertising dollars):

Time spent by people online:Time spent by people on old school media Dollars
spent on online advertising:Dollars spent on advertising in old school media

The 1st ratio is of course larger than the second.

