WSJ Blames Digital Ads

Not surprisingly, this recent report by the WSJ is bearish on digital advertising. The summary is a common refrain, “digital media spending is booming, while investments in traditional media are being pulled back”. Meanwhile, a broad behavior generalization is passed off as a standard operating procedure:

When advertisers shift budgets to digital media, they expect to save on their overall ad spending

As we’ve seen time and time again, digital is burdened with different rules and higher expectations than traditional. Results are expected faster and with a higher return (not a problem, digital is up to the job and has a history of delivering). It’s this next capacious comment that should stop fellow internet marketers in their tracks:

Digital media thus has a deflationary effect on the broader ad market and can hurt the pricing power of traditional media.

Seemingly, the WSJ is blaming digital advertising’s effectiveness for the decline of traditional advertising rates along with an eventual burst of the advertising bubble. Maybe it’s time they start running digital ads encouraging the viewing of traditional ads?

 Oct 25, 2015  |