Magazines, newspapers, television and radio stations all rely on ad revenue and seem to be dying off. Are advertisers just spending less? If not, where are those ad dollars going?
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Online advertising is incredibly targeted.
If you want to take out an ad in a newspaper that targets 35 year old white men who own a pickup truck and have searched for “mitre saw” and “how to install vinyl plank flooring” in the last month, you just have to take out an ad in a whole newspaper.
If you want to do the same thing online, you can target a very specific subset of people.
Online advertisers can deliver essentially the same number of new customers from an ad campaign but only show the ads to a small number of relevant potential customers. This means they can undercut traditional advertising on the rates, while essentially selling the same ad space thousands of times for every different viewer.
Thus, online advertising is the most cost effective way to advertise, which means traditional ad-based media gets hurt.
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