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Feb 5 2009

In this economic environment, we're all struggling to get more out of our current investments. My husband and I live in Marin County, CA where double-digit real estate value growth is the norm. While the rest of the country is staring down drastically declining home values and possible foreclosures, our community has dropped from an average single-family home price of $1.3M to a meager $1.1M in the last year and is facing mere single-digit growth projections in the next fiscal. Let's just say that Marin County is as good as any place to live out the uncertain times that lie ahead. So while a few short-sighted neighbors post "for sale" signs, we are investing in finishing out our attic and laundry room to get the most out of our existing space, knowing this will pay immediate and future dividends.

The online ad industry is no different. Despite the collective community groan about flat to single digit growth in this previously explosive industry, it is "as good as any place to live out the uncertain times that lie ahead." I would argue that it is the best place. Not just in spite of the economic challenges but precisely because of them, this asset of accountability becomes an even more valuable part of your overall marketing spend. While third party ad networks are facing drastic decline (think of them as say, Detriot, with a fundamental business model flaw), there is still great real estate to be purchased in a much more targeted part of the country. You just have to know where to buy (it's all about location, right?), and what investments to make.

The most important investment you can make right now is one that maximizes your existing real estate. And that means turning the massive amount of web analytics data you have into rich targeted profiles that command premium pricing. Our clients that have made this investment are now selling their targeted inventory at twice that of ROS and three times that of remnant. As a result, there is no need to peddle your inventory for an insulting .26 CPM through third party ad networks that will most certainly erode your brand. So instead of groaning about declining ad revenue growth rates, take a moment to remind yourself what made this industry so explosive in the first place. And why that real estate is still extremely valuable in this market. You just need to invest in a few finishing touches to maximize its value, that's all.

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