Could it be true? Could we really be speeding into a PPC bottleneck!

“McKinsey research finds that bottlenecks in supply could limit the pace of online ad growth and raise prices over the next 24 months.” http://www.mckinseyquarterly.com/article_page.aspx?ar=1811&L2=16&L3=16

Further more “they” say we have 24 months - could we be running out of options - do we need another search engine to give us more ’supply’?

“This analysis revealed that the utilization of the most attractive digital-ad vehicles is already quite high and that, without large increases in the level of online advertising “inventory,” demand could outstrip supply over the next 24 months (exhibit).”

And finally, I completely agree with this:

“Marketers must build the capabilities necessary to thrive in an environment where audiences and vehicles are highly fragmented, prices change quickly, and advertising’s performance differs by customer, vehicle, brand, offer, and message. This transition will require not only new management skills but also a detailed understanding of the marginal economics of products, customers, and customer conversion.”

Will it happen - we’ll see!