The $65 billion hole in the online advertising business

Online publishers and ad networks are struggling to come up with ad formats that increase the effectiveness — and price — of advertising online. But there’s a possibility that analog ad dollars turn into digital dimes because advertisers are getting better value elsewhere.

According to Outsell Inc., a media research and advisory company, marketers will spend $66 billion on TV advertising and $42 billion on newspaper advertising this year.

But they’re also going to spend another $65 billion on their brands outside of traditional advertising. And online publishers won’t be seeing any of that money. It will be spent on other places — like companies’ own websites, search engine optimization and social media.