You don’t have to be a high-flyÂing busiÂness develÂopÂment manÂagÂer to know that when peoÂple access free conÂtent on the Web, it’s because online adverÂtisÂing paid for it.
It might not yet be as big as its oldÂer TV, radio and print cousins, but interÂnet adverÂtisÂing is defÂiÂniteÂly on the way up. OthÂerÂwise ad-trackÂing comÂpaÂnies like Marin SoftÂware would have litÂtle to look forÂward to in an IPO; instead, its shares soared from $14 at the start of tradÂing last FriÂday to $20, setÂtling down at $16.26. All told, it pulled down a walÂlopÂing $105 million.
How to make a busiÂness develÂopÂment manÂagÂer smile
The marÂket gave a vote of conÂfiÂdence to online adverÂtisÂing in this IPO result – the kind of verÂdict guarÂanÂteed to put a spring in the step of the jobÂbing busiÂness develÂopÂment manÂagÂer. AdverÂtisÂers want to track their returns and Marin’s own research sugÂgests that they remain buoyÂant: last year, the total online adverÂtisÂing spend was $98 bilÂlion. By 2017, the comÂpaÂny foreÂcasts that it will rise $174 billion.
AccordÂing to the firm’s CEO Chris Lien, this won’t simÂply mean more ads, it’ll mean betÂter ads. He said:
“ConÂsumers will see a lot of posÂiÂtives over the next couÂple of years in terms of relÂeÂvance of ads. Ads that are viewed as intruÂsive will become welÂcome because they’re so relevant.”
The day of the one-to-one ad nears
Big develÂopÂments are already underÂway, Liens says. Most of us won’t yet have seen them, but a new genÂerÂaÂtion of ads is about to arrive; the biggest adverÂtisÂing platÂforms are gearÂing up to delivÂer genÂuine one-to-one adverÂtisÂing, where the only ads a conÂsumer will see are the ones he or she is truÂly interÂestÂed in.
Firms like Marin aren’t the only benÂeÂfiÂciaÂries of the steady forÂward march of online adverÂtisÂing: if you can stand the incanÂdesÂcent glare, just take a look at the shine comÂing off Google’s shares, which have stood at over $800 for almost a month. Yes, it’s been in the news lateÂly for RSS apps, self-driÂving cars and Google Glass, but no busiÂness develÂopÂment manÂagÂer should forÂget that it’s first and foreÂmost an adverÂtisÂing comÂpaÂny, sellÂing $42 bilÂlion worth of ads in 2012 alone.
The writing’s on the wall: interÂnet adverÂtisÂing is poised to meaÂsure up to its oldÂer relÂaÂtives very soon.