By Nancy Lane, president, Local Media Association
Matt Coen, president of Second Street and sponsor of the LMA Deals & Promotions Summit, got things started this morning with opening comments:
Why online promotions?
Revenue from online promotions will surpass online advertising starting in 2014 and will double starting in 2016. Online advertising accounts for $40.3 billion dollars this year and will remain fairly flat in the coming years. Online promotions has grown from $16 billion in 2008 to over $35 billion in 2012 and will exceed $50 billion by 2014/2015. (Source: Borrell Associates).
Merchant success with deals is growing. The majority (62%) made money on deals in the last few months; another 19% broke even; 19% lost money.
Why performance-based advertising? 65% of internet advertising is performance-based (think Google, FB & deals); 31% is impression-based. This model is here to stay.
Be sure to check back often for updates throughout the day. Starting this afternoon, Al Cupo will also be posting live updates from the Classified Mulitmedia Conference.