The Economist takes a comprehensive look at our industry with its article, "The Ultimate Marketing Machine," a survey of Internet advertising. "In terms of efficiency, if not size, the
advertising industry is only now starting to grow out of its century-long infancy, which might be called the Wanamaker era," it says. Department store owner Wanamaker, of course, is the man who
famously said, "Half the money I spend on advertising is wasted. The trouble is, I don't know which half." He was close: The IAB estimates that advertiser waste is $112 billion a year in America, and
$220 billion worldwide, about half of the $428 billion spent globally. The idea behind Internet advertising is that this no longer need be the case. We all know pay-per-click and cost-per-action ad
models have revolutionized direct marketing, but other products like mortgages could someday conceivably be sold through performance-based marketing as well. Meanwhile, products like cars, cosmetics
and alcohol will always be sold through brand advertising. This is inherently about leaving an impression on a consumer,
The Economist says, something the Web is well-capable of delivering, but
it also allows the ability to measure actions taken by consumers as a result of a marketing message. To be sure, the Wanamaker years are in decline; as Rishad Tobaccowala, chief strategist for
Publicis Groupe's Denuo notes, "all of us have been classically trained, and now we're in a jazz age."
Read the whole story at The Economist »
