Local advertising is poised to surge 16.4%, from $113 billion in 2015 to $132 billion this year, according to a new forecast from Borrell Associates. Key drivers are a $5.5 billion injection from state and local election ads, and $17 billion in additional spending that local businesses are likely to dole out for digital media.
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With TV ad spending on the GOP presidential race five times higher than at the same point four years ago, the unprecedented slugfest will make digital solutions a more attractive media option.
TV viewers in many contested states are likely to be exposed to 3,000+ political commercials in the 60 days preceding the 2016 election. And that has important repercussions for every advertiser. First, gaining share-of-voice in this cluttered environment “is going to be virtually impossible to achieve with every candidate trying to out-shout the other”. Secondly, the negative tone of political ads is shown to have a toxic effect on commercials from non-political advertisers. “When there’s 3, 4 or 5 political commercials in every television commercial break, it’s impossible for any advertiser to escape unscathed from this environment of negative mudslinging,”. Third, a commercial’s effectiveness is diminished when multiple competitors for the same office attack each other. All of which could make for a much stronger case to shift dollars to digital solutions. Already there are encouraging signs. How Digital Can Benefit From TV’s Lack of Political Ad Effectiveness Global media spending is expected to grow at a steady pace over the next five years, up to $2.1 trillion by 2019 from $1.6 trillion in 2014, according to a new report by consulting firm McKinsey & Company. Spend will increase at a compound annual rate of 5%, the report says, with digital media driving growth and commanding an increased share of ad dollars.
Digital Ad Spending Expected to Soon Surpass TV
Television has lost its longtime grip on advertising budgets as digital ad spending continues to surge, according to some of the advertising industry’s most closely watched forecasts to be released on Monday. Television ad sales are expected to fall slightly this year, decreasing globally for the first time ever aside from a recession year, according to the Interpublic Group’s Magna Global. TV will account for 38.4 percent of the $503 billion global ad market this year and will drop to 38 percent of the market in 2016, according to the forecast. Mobile internet advertising will overtake newspaper advertising next year, accounting for 12.4% of global ad spend while newspapers account for 11.9%, according to ZenithOptimedia’s new Advertising Expenditure Forecasts. Mobile internet will be the third-largest advertising medium, behind television and desktop internet.
Mobile advertising will grow 38% in 2016 to US$71bn, while newspaper advertising will shrink 4% to US$68bn. Mobile advertising remains the driving force behind the growth of the entire advertising market, contributing 83% of all new ad dollars between 2014 and 2017. Why I'm Grateful to Be a Solopreneur
INC MAGAZINE – VISION 2016 This year I'm glad I work for the best boss ever--me. Maybe you should join the ranks of solopreneurship as well. Every once in a while I think, "Wouldn't a corporate job be nice?" You know, the kind where your paycheck is the same every week and you get a bonus once a year, and stock options and an annual holiday party? Then I remember that while I've loved my previous jobs, I love being a solopreneur even more. At this Thanksgiving season, here's why I'm thankful for my current situation. Oct 30, 2014 Smartphones beat tablets for delivering ad results; tablets win for engagement Advertisers are shifting ad dollars to mobile and away from other formats in order to drive customer engagement, reach consumers across platforms, build brand awareness and drive retail or online sales, according to a July 2014 study by Advertiser Perceptions. But where will those dollars come from over the next year? Print, television and digital display are the chosen ones. More information www.4localmedia.net More than 40% of US advertising decision-makers who planned to increase mobile ad spending over the next 12 months said they were taking money out of their print advertising budget to do so, while 34% said the same about TV ads. Even digital ads aren’t safe. Nearly one-third of respondents said they would lower investments in digital display advertising in order to spend more on mobile. A lucky 38% of respondents planned to fund higher mobile spending thanks to an overall expansion of their budgets. Mobile will likely continue to grab ad dollars away from these formats—and possibly others—as it continues its rapid expansion over the coming years. This year, eMarketer estimates that US advertisers will increase spending on mobile ads by 78.0%, pushing the total to nearly $19 billion, and next year, growth will come in at 50.0% for mobile ad spending of $28.48 billion. Even in 2018, expenditure on mobile advertising in the US will expand by nearly 20% to raise the total to $58.78 billion. Whether advertisers put their mobile dollars toward smartphone or tablet ads depends on what they’re trying to achieve. Advertiser Perceptions found that smartphones were better than tablets for delivering ad results such as impressions, awareness and return on investment, and they also beat the bigger screen for audience and targeting. Meanwhile, tablets won for engagement and user experience. Want to get your piece of the $19 BILLION in growth next year? www.4localmedia.net TV Still Reigns in Advertising, but Digital is Up and Coming
Television still commands the most ad dollars, but digital video is an increasingly important competitor. April is the month when television executives make their respective cases for bigger budgets, and cable networks are trying to close the gap in ad pricing that has long existed between cable and broadcast, where there’s a 3 to 1 advertising rate gap between broadcast and cable. Cable takes in more total ad dollars, but their rates are lower than broadcast TV’s. Because broadcast television still reigns in terms of ratings, many low-rated shows on broadcast TV get considerably higher cost-per-thousand-viewer ad rates than comparable cable shows. SEE ALSO: 4 Reasons Why Television Marketing Still Works for Audience Engagement And then there’s the new player that could disrupt the entire video apple cart: online video. Online video outlets like YouTube command nowhere near the advertising rates TV does, but changes in viewer habits (i.e. viewers who are becoming increasingly platform-independent) are changing things. In a few years, digital video advertising could bring in more ad dollars than television. The Numbers The Hollywood Reporter says that for the 2013-2014 season, ad-supported cable networks took in $10.2 billion in upfront commitments, which was a 4% increase over the previous year. In comparison, ABC, CBS, NBC, Fox, and CW captured $9.15 billion for 2013-2014. But while cable has been outperforming broadcast TV for ad dollars, increases in cable advertising intake are starting to level off. The top ad-supported cable networks for 2013, in order, are ESPN, USA, TNT, TBS, and Fox News. Overall, advertisers spend $60 to $70 billion annually, including ads on broadcast, cable, local, syndication, and Spanish-language television. In 2012, online ad spending was around $36.6 billion, with $3.4 billion of that spent on mobile advertising. What’s Changing Consumers are far less wedded to television screens and consume video on multiple platforms. An article in Variety reports that ZenithOptimedia, an ad-buying firm, predicts television’s chunk of global ad spending will fall to less than 40% by 2016. In the early decades of broadcast television, broadcasters only had each other to compete with for ad dollars, until cable became ubiquitous. And now, digital video is shaking things up once again. So far in 2014, advertisers are showing increased comfort with putting their ads in all types of video on every platform, so the dynamics of the advertising market are undergoing considerable changes. Rather than a television ad marketplace, the new normal is a video ad marketplace. Television will have to become more flexible to maintain healthy advertising levels, and many networks are trying new things to draw in younger viewers who are far less tethered to television than older viewers. Tactics may include “micro-video” teasers aimed at younger viewers, and advertising deals that weave product placement into shows while creating complementary promotional videos. Cross-Pollination Between Television and Digital Broadcast, cable, and digital are all still very much siloed in the upfront song and dance. But now the digital folks have NewFronts, a similar setup where digital videos compete for TV dollars during the upfront negotiations. At the same time, traditional TV networks like CBS, Unavision, and The Weather Channel are choosing to join online giants like YouTube in NewFronts in an effort to be seen as legitimate digital companies. Advertisers have been shifting money into digital video for years, but television still reigns supreme. That, however could change within five years. Digital to Television: Takeover or Merger? Today, ad buyers are purchasing advertisements to appear not on TV “shows” but TV “content,” which is streamed on multiple platforms. Ad buyers are moving toward a future in which they can reach consumers regardless of what screen they happen to be using. Some media experts believe that digital video ads will take more ad spending away from print, outdoor, and display ads than from television. A report by eMarketer says that digital advertising will overtake television advertising in 2018. Right now, marketing specialists still believe that television commercials influence audiences more than other ads, but digital giants like Google are working hard to convince ad buyers that the money they spend on TV gets a better ROI online. We’ll have to wait a few years to see if they were able to make their case. As a digital publisher, you have to know where to spend your own marketing dollars, and how to bring in marketing dollars from others, including advertisers that currently spend on television. Knowing the trends and changes happening as digital video grows in importance can help you create the smartest strategy for marketing and monetizing your site. 4 Local Media - Damon Balch (480) 442-1049 damon@4localmedia.com |
Damon Balch
A 20+ year advertising executive is providing a no-charge idea driven consultative business overview. Archives
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