MarketingVox has a story today, about the continuing preference of consumers for email for commercial correspondence. Here is a brief synopsis of the results, click over to the MarketingVox article for their take, or the original at Habeas, or the MarketingCharts opinion.
What’s happening with the economy? Every day there is another news story about someone loosing their house because the economy is … dare I say it … in a RECESSION. Well how is this downturn going to affect the advertising industry? Companies still need to advertise, right? Of course, it’s more important in a "down" economy for companies to fight harder for their share of the dwindling consumer dollar.
So, what is a company to do with it’s marketing budget?
SHIFT IT TO ONLINE
Why, you ask? Because it is measurable, trackable, and it is not hard to generate the metrics to determine if a campaign is successful.
eMarketer has an interesting article, today, on a study conducted in February by Penton Research for PROMO Magazine that talks directly to this point. It is reporting that 43% of marketers surveyed are planning to increase their online marketing budgets in 2008.
At what point is it no longer "alternative?" Mediaweek has a story out, today, by Mike Shields, reporting on a study by PQ Media which states the following:
"Ad spending on alternative media, including user-generated Web content, Internet search, mobile, gaming and branded entertainment, this year is on pace to jump 20.2% to $88.2 billion, even if there is a recession, according to a PQ Media report. The segment by 2012 is projected to reach $160.82 billion and comprise 26.6% of total U.S. ad spending."
PQ Media is calling, "alternative media" that media, "which encompasses everything from digital to mobile to emerging segments like gaming and branded entertainment." They are projecting that in four years time "alternative" media will account for more than 25% of media spending.
That’s VERY conservative, in my view. Having been on both sides of the "wall," that number is going to grow in a much more exponential fashion, in my opinion. I’d say that in four years "alternative" media will account for between 35-50% of media spending… unless the term is redefined.
What is the future of media and advertising? At a lunch meeting today I learned that one of the, "Big 3," automakers is allocating its 2008 regional advertising budget as follows:
Now the caveat to these numbers is that some print is still being run as part of national campaigns and some individual dealers are also still running print ads. The future of marketing is clear, especially in a, "tight," economy. Marketers require a solid (and positive) ROI, and more importantly, low CPL (cost per lead); how is that going to happen?
It is highly targeted, results driven, and easy to measure. Large agencies, and even mid-sized and small ones, see this coming and are trying to adapt, but, it is challenging for them to change their models fast enough to stay competitive. The client is asking for more and more, for less and less and the agencies are caught in the "profit gap." Digital marketing (and all of its specialties) requires fairly expensive skilled professionals; the agencies are either paying the salaries, or outsourcing and losing money…. What’s the answer?
Stay tuned for more.
Thanks to wikipedia for the definitions…
What is PPC (Pay-Per-Click) Advertising? The best example, and some would argue, most successful, is Google’s AdWords product. This technology is based around a bidding system whereby an advertiser "bids" on "clicks." This is a keyword based model and there are other companies competing with Google in the space. Daber, over on ArticleBliss.com, has posted several interesting articles on the topic, here is one entitled, "Pay Per Click Advertising to Maximize Web Promotion." Here at DMIdeas.com we believe that PPC advertising can be a very effective part of a larger marketing campaign. It is also very effective for the smaller business that is trying to get some traction in the on-line marketplace.