Growth in Digital Marketing and How to Benefit from it
The economy has affected all sectors of the world economy and there is not a single area that has not felt the pain. Retail, autos, health-care, finance, non-profit, government, manufacturing, services, consumer staples – all have suffered in some form or another. One of the areas hit hardest is Media.
Moreover, audience participation and interaction to advertising on the internet can be monitored, tracked and reported a lot more easily and accurately compared to other media outlets, so businesses want to pour their budgets more and more into the internet for the sake of being able to track their revenues back to the spend.
The one internet giant that stands to benefit from this shift is Google. It has over 70% of the internet search market. Competitors like Yahoo and Microsoft either don’t have the focus or the technology to compete with them while they keep rolling out innovative ways to capture the internet audience.
Since November 2007, Google has seen its stock price tumble from around $750 to $330 last week (although it has dipped below the $300 mark on a couple of occasions in the last four months). The time to buy Google is now. It is trading at less than 14 times earnings and has over $15 billion in cash. With media trends pointing to this shift from traditional media to digital, you can be rest assured that Google stands to be the primary beneficiary.
– Faisal Laljee
Full Disclosure: I do not own Google, but my position can change anytime without notice.
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