July 25, 2011

Marketing $ shifting to digital

A US survey of marketing decision-makers in March 2011 asked how much of their budgets had shifted from traditional buckets to digital ones in the past three years:

  • 23 % said they had shifted 30% of their marketing $ to digital
  • 24 % said they had shifted 20% of their marketing $ to digital

  • eMarketer predicts that magazine and newspaper advertising will decline as digital ad spending will rise.
  • In 2011, internet advertising is already the second-highest advertising medium behind TV. But the combined advertising spend of newspapers and magazines is $4 billion higher.
  • Next year, the situation will be reversed. Marketers will spend $2.9 billion more in US on internet advertising than on print.

Meanwhile, as consumers’ attention strays markedly from print, the ad spending dedicated there remains disproportionate.

  • For newspapers, people in U.S. spent 4.9% of their time reading them in 2010, but marketers committed 14.9% of their budget to that medium.
  • In magazines, the contrast is equally dramatic. Magazines commanded just a 3.3% share of consumer’s time in 2010, but spending was 9.6% of marketers’ budgets.
  • For Internet, people in U.S spent 25% of their time online but 17% of their budgets were committed to this medium.

There is currently a significant imbalance of time spent per medium vs. allocation of marketing $ – this lag needs to be addressed in the coming years to better reflect the reality of modern media consumption.

Posted by Rob Booth | Filed under: All, General, Media, Useful | No comments yet - be the first

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