Foster's goes on internet bender

This is certainly ominous for the ad biz: Foster's, which is an Australian brewing company, says it will no longer advertise on TV in the US. From now on, its advertising medium of choice will be the 'Net.

True, for a small brand like Foster's, competing with the ad budgets of competitors like Anheuser-Busch is fairly daunting. Perhaps the Internet will provide a cost-effective edge? This decision shows the impact of bringing accountability to advertising, such as Google and Yahoo have done.

Besides, Foster's is likely having a hard time finding the niche customers it desires. Simply put, its customers are spending time away from television -- and going to the 'Net or playing video games.

Yesterday, I talked to David Moore, who is the founder and CEO of 24/7 Real Media, which provides online marketing services. "The Web provides great value to advertisers," he said to me. "It is so much more effective than traditional advertising." And, no doubt, this has been very good news for 24/7.

He also mentioned that there are already signs of major change, such as the lukewarm up-front buys for the networks, as well as the low growth for cable properties. "But I see newspapers getting hurt the most," said Moore. Not only is circulation declining, but newspapers are experiencing erosion in classifieds. The attacks are coming from companies like eBay and Craigslist.

So, you will no longer see your favorite Foster's commercials any more. Instead, you're likely to see quirky online videos on sites like YouTube and Heavy.com. And, over the next couple years, this will be the case with more and more brands.