How the recession is driving ad agencies to perform

While on the subject of the online advertising market, I looked up some recent published data from DNA India. Please read the article in full here.

The recession is giving rise to the following trends:

- Customers are moving to online ways of marketing/ advertising from the traditional media. The reduced marketing budgets are driving this.

- Customers are demanding to see clearly measurable and attributable results of their marketing spend.

- The model is becoming pay-for-performance; which simply means: "I don't care who and how many saw my advertisement. I care about what action they took after they saw the ad."

Did they click, visit a website, see a tailored offer or, actually purchase anything?

Advertising online will soon have to answer questions they have never had to answer. So, instead of spraying messages at random, they will have to collaborate with their clients in segmentation, targeting and messaging and positioning to maximise returns on the marketing spend in line with their objectives.