The online ad industry has rebounded. In 2010, online ad revenues hit their highest level, reaching $26 billion, after faltering in 2009. Performance-based spending on search advertising and display formats led the way, as did ad buys from retail and telecom brands…READ MORE.
My Take: I’ve mentioned online advertising on this blog a number of times. The chart above depicts a trend that had a slight set-back in 09, but continues its ‘bull’ run. Companies like Facebook, Google and Yahoo! are built on online ad revenue. Yet, they’re not the only players. Other companies do exist that offer a number of specific services for companies looking to establish themselves online.
As an investor I believe it is a good strategy to invest in trends that are steadily gaining momentium. For the next 5-10 years online advertising will be such a trend. I remember back in 2004 investing in an online advertising company called ValueClick (I believe Google bought the company?). It turned a nice profit for me because of the trend toward online advertising. As more people become connected and more opportunities to remain connected are presented in different areas of our daily lives, more marketing money will be directed to online sources.
Two examples of large companies rolling out e-marketing initiatives are McDonalds & Kellogg. Both companies are not ‘online’ companies, yet they are taking significant steps in the development of an online marketing presence.