Wednesday, February 25th, 2004
In todays WSJ, Mylene Mangalindan takes a detailed look at the resurgence of online advertising, focusing on Mitsubishi, which has done a number of ad campaigns online and is boosting its online spend 50% in 2004 to $6 million. The company “increased spending after each successful Internet campaign by slicing money out of its billboard and print publication budgets.” Now, Mitsubishi’s online ads have cut the company’s “cost per sale — the amount of money spent on advertising divided by the number of cars sold — to one third of the cost of traditional advertising media.”
For you skimmers here’s the point: ONE THIRD. The economics of traditional publishing are disintegrating fast.