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A recent article in Marketing Pilgrim states that small businesses are abandoning banner advertising in favor of SEM, social media, and e-mail marketing. The big question is, Why?

It’s not hard to see, really. These are more effective ways of marketing a business online.

The Internet marketing industry has been aware of the declining value of online banner advertising for a few years now. It just doesn’t work. Mainly because of something called ad blindness. Websites users and searchers tend to block out those ads after they see them time and time again. But it’s hard to ignore your friends on social media, your captured audience in e-mail, and the higher ROI and response rates of SEM. The data proves these are just more effective means of Internet marketing.

Maybe we can say that small businesses are wising up to the ways of successful Internet marketing? If so then 2010 will likely be the year of SEM, SMO, and e-mail marketing. Do you think?