The year 2001 is expected to witness a significant downturn in the online advertising market, with a predicted decline of 25%. This is largely due to the economic recession, which has made potential advertisers more hesitant to invest in advertising. This has had a significant impact on both large and small businesses, particularly those that rely heavily on ad revenues. However, there are strategies that businesses can employ to mitigate these challenges and continue to benefit from their ad space.
The economic downturn has made potential advertisers more reluctant to invest in advertising, particularly in the online space. This has had a significant impact on both large and small businesses, particularly those that rely heavily on ad revenues. Large dot-coms, which are heavily dependent on ad revenues, have either gone out of business or been forced to cut back. The same story applies to small business owners, who are also feeling the pinch of lost ad revenues.
The decline in ad revenues has led to the emergence of ad auction sites such as WebmasterBids.com and EzineAdAuction.com. These sites are designed to help newsletter editors and webmasters sell their remnant ad space - space that would otherwise remain unsold, resulting in lost profits.
Despite the challenges, businesses can still benefit from their ad space. Here are some strategies that can be employed:
Encourage Customers to Book Multiple Ad Slots: Offering large discounts on multi-ad packages can be a win-win situation. The customer receives excellent value, and more ad space is booked with less stress.
Auction Off Remnant Ad Space: As mentioned above, there are platforms where unsold space can be put up for auction. A 'reserve' price can be set, under which the business is not obliged to sell.
Offer Incentives to Subscribers and Previous Advertisers: The business's own mailing list can be a great source of advertisers. Offering great incentives such as free bonuses or significant discounts can encourage them to book.
Swap Ads: Approaching other editors within the same niche market and offering to swap ads can be a great way to increase exposure and fill ad space without spending money.
Barter: Ad space can be used as a bargaining chip. For example, a graphic artist could be asked to create a banner or eBook cover in exchange for ad(s) in the newsletter.
Go the Extra Mile: Providing prompt, friendly, and reliable service can encourage repeat orders.
If a business relies heavily on ad revenues for profits, it is advisable to start building another viable income stream. One model that's becoming increasingly popular is the content-rich, fee-based membership site. Companies that are overly-reliant on ad revenues have a choice: adjust to the ever-changing world of the Internet, or risk going out of business. As the saying goes, 'Never put all your eggs in one basket'. This is good advice for every online business owner.
