Why Online Ads Are Weathering the Recession - BusinessWeek Dec 24, 2008

This article by Jeffrey F. Rayport examines why online advertising is holding its own when the majority of the advertising business at large (TV, radio, print etc.) is seeing their clients' ad campaigns postponed, reduced or just plain terminated by corporate boards. These efforts have been aimed at preparing for a rough 2009, as experts predict further declines through at least an additional two quarters. Rayport compares the current recession with that of 2001 (don't remember it? read more here), which many argue was caused in large part by the Dot-com bust. In his view, the current recession is different (in a positive way) this time around due to the following reasons (summarized here for your laziness):

1. Online advertising has matured substantially since 2001 (more measurable, increased reach, more pay-as-you-go options compared to other forms etc.).
2. Strengths of digital as an ad medium: (a) accountability, especially in search/pay-per-click advertising, (b) compelling user experiences, thanks to rich media allowing for interactivity.
3. Online environments' susceptibility to social media i.e. word of mouth and sites like Facebook, MySpace (though less and less), LinkedIn are forcing advertisers and the clients they represent to rethink how to make something viral.
4. Marketers (especially brand advertisers) more willing to invest in their own media properties (outside of their corporate/product website) to specifically connect with their desired demographic (check out this example by Chevron/Economist).
5. Capability of Online for pinpoint accuracy to reach consumers at the any stage in the buying process.

I agree whole-heartedly with Rayport's take, stressing out of the first reason (maturity of online as an ad channel) the increase visibility of metrics. The foundation of the necessity of online advertising for marketing campaigns are metrics that are clear, accurate and meaningful. Online ads have taken ad dollars from other forms (and will continue to do so) because they're simply able to justify the spend/impact better with these metrics.

Read the article in full here.