By Patricia Wilson, founder of BrandCottage

Advertising is dead. Long live advertising!


Or so the chant continues as advertising spending continues its march from economic doldrums and adjusts to changes due to technological innovations and shifting consumer media habits.

Interpublic Group’s Magna Global recently lowered its 2012 worldwide ad revenue projections, but still predicts total ad revenues to be up 3.7 percent — nearly $153 billion — in the United States. Similarly, ZenithOptimedia forecasts a 3.6 percent growth expenditure for the United States in 2012, pointing to continued newspaper declines and flat magazine advertising,  but increased market share for Internet advertising.


Biggest gainers: digital and mobile ads aimed at driving new revenue from a growing appetite for tablet computers that come in all shapes and sizes, from the innovation-leading Apple iPad to the low-cost Amazon Kindle Fire (see PCMag’s tablet review). However, even within the television and digital ad spaces, changing priorities in ad spending look like the norm for 2012.


(See related BrandCottage blogs: Advertising’s Recovery: Not all Media Created Equal and Advertising Spending Looks Up in 2010.)

TV Advertising Maintains Market Share

Holding its own in the battle for advertising dollars: television.


Cable “cord cutting” is expected to continue in the U.S. at an annual rate of 500,000 subscribers for the next few years,” said Vincent Letang,the executive vice president and director of global forecasting at Interpublic Group’s Magna Global (reported by MediaDailyNews). But dollars won’t be lost as much as they are redirected to other video channels and platforms.

Print Down But Not Out

A poor performance in the second half of last year resulted in an 3.1 percent decline in magazine ad pages for 2011 compared with 2010, according to a report recently issued by the Publishers Information Bureau (PIB). Category declines included food and food products, home furnishings and supplies, public transportation, hotels and resorts and direct response companies.


There are, however, some “pockets of strength” in the apparel, cosmetics and financial sectors. In fact, according to Mediafinder.com, 239 new magazines launched in 2011, up 24 percent from 193 new launches in 2010 (see MediaDailyNews). Business-to-business magazines almost doubled, from 34 new titles in 2010 to 62 last year.

Innovation Drives Advertising Disruption

Three emerging trends are the direct result of disruptive technologies, according to a 2012 market survey conducted by AdMedia Partners:

• The distribution of content across trans-media channels.
• The demand for real-time, more personalized content across multiple devices.
• Exponential growth in the ability to collect, manage, analyze and execute on marketing data.

“As a consequence, digital media and marketing services are experiencing more rapid growth than both the overall economy and marketing spending as a whole,” according to the AdMedia report.


The Internet is and will continue to be the fastest-growing medium, according to ZenithOptimedia. Major Internet advertising trends, worldwide:

• Display is growing the fastest, at 18.9 percent a year, and is driven mainly by online video and social media.
• Paid search is growing more than 15 percent a year, but growth is “slightly restrained by the shift in search behavior from desktop to mobile devices, where costs are currently lower.”
• Google increased its global share of the Internet market from 34.9 percent in 2006 to 44.1 percent in 2010.
• Facebook has overtaken AOL with a market share of 3.1 percent in 2010.

Digital advertising has quickly advanced from a fringe buy to an imperative part of companies’ media mix,” notes Jenna Levy in the Marketing Conversation blog.


Even more amazing, Forrester Research predicts that U.S. advertisers will spend $77 billion on interactive marketing in 2016 (thanks DailyDOOH).


That’s the amount spent on television today!

Patricia Wilson is the founder of BrandCottage, a media marketing company with offices in New York, Atlanta and Washington, D.C.

By Patricia Wilson


The iPad. Promoted tweets. Interactive ads. Which hot new trends have merit for advertising? Getting to the soul of marketing. These were just some of the main topics covered at the 2010 Ad Age Digital Conference held April 13 and 14 in New York.


BrandCottage was on hand at the conference. Here are some of the event’s highlights:

Best speaker: Jim Farley, group vice president of global marketing at Ford Motor Co.


Farley, who is the cousin of the late comedian, Chris Farley, explained that Ford is riding a wave of advertising success based on the “democratization of marketing.” In both digital and traditional marketing, he explained, Ford puts the brand in the hands of real consumers. “That’s what digital has shown us: how to earn credibility among consumers,” he said.


One out of every four advertising dollars spent by Ford goes to digital, including social media. “Social media has shown the importance of being authentic, even in traditional media,” Farley noted.


Few could argue with Farley’s authenticity. At 16, he purchased his dream car, a Ford Mustang. “To be good at marketing, you have to understand the soul of what you’re selling,” he said.


See Ford’s Jim Farley Says Recession Was a Blessing for Digital in Advertising Age for full story.


Biggest news: Twitter COO Dick Costolo announced promoted tweets. It was refreshing to hear from Costolo that consumers and advertisers have a “wait and see what happens” attitude about the acceptance of promoted tweets and that Twitter was going to move ahead carefully (testing of promoted tweets began during the conference).


“We wanted to do something that just enhances the conversation that companies are already having with their customers on Twitter,” Costolo said. Of course, Twitter also needs to build a revenue model to capitalize on the company’s reported 50 million daily tweets — a fact not lost on attendees.


Twitter’s initial version of promoted tweets — in the form of keyword ads — will appear in search results. Later the ads will appear in user feeds on Twitter and on third-party clients such as TweetDeck, TwitterBerry and Tweetie, which Twitter recently acquired.


In short, each ad is a tweet that will appear at the top of a search. The promotional tweet can be re-tweeted, just as a regular tweet is passed around today. Costolo said ads would be available on a CPM-basis.


See Chats, Stats and Secrets about Twitter in Advertising Age for more information.


Biggest antagonist: Yahoo! Scientist Duncan Watts, who questioned the value of tweets.


Watts reported that, based on his research, a tweet’s average influence score is 0.28 people. “Most of them will send tweets and no one else re-tweets,” he said. “A lot of times, not that many people are listening on Twitter.”


However, Watts did not discount the value of thousands or millions of many-to-many connections. In fact, he said that advertisers would get more value from a lot of small influencers than from a big influencer such as Kim Kardashian, at $10,000 per tweet.


“If you recruit enough people who, on average, influence just one other person, you could get a much better return on investment,” he said.


Best quote: “I’ve seen the future and it’s covered in greasy fingerprints,” said Simon Dumenco, Ad Age’s Media Guy.


Dumenco gave a lighthearted speech on the transformational power of the iPad, for which he believes fingerprints are about the only down side of the device. Still, he added, publishers have only begun to scratch the surface of the iPad’s potential. “So far, the iPad’s killer app is demo-ing the iPad,” said Dumenco, quoting technologist Ben Rosen.


Cautious optimism: Digital is here to stay and marketers are getting on board in big ways. However, most CMOs and brand marketers say they are not hopping on the next shinny thing just to be first. “We never hop on the next hot thing, but the iPad made a lot of sense for us,” said Vivian Schiller, president and CEO of NPR.


For companies such as Dell, however, it’s full speed ahead. “Dell is a total digital company and it’s part of our corporate DNA,” said Dell CMO Erin Nelson. On Twitter, Nelson said the social media platform “has collapsed our customer feedback cycle and dramatically improved product development.”


In conclusion: Understanding how consumers use various media, how they react with online ads and why they join social networks in the first place — these are all important strategy questions for branders. We’ve moved way past mere reach and frequency.


What is clear is that (1) no single media owns the consumer and (2) the consumer now has a lot of influence. Smart marketers understand that consumers now seek authentic and trustworthy brands — new realities thanks to digital and social media.


Patricia Wilson is the founder of BrandCottage, a media marketing company with offices in New York, Atlanta and Washington, D.C.

By Barry Lawrence


When launching a social media engagement strategy, to pull consumers into brands, it’s important that companies begin to appreciate the many styles, tolerances and expectations that consumers bring to social networking. If your social media program is stuck in the mud, it may be that you are turning some customers away with a one-size-fits-all engagement strategy.


To help marketers account for different social media behaviors, Forrester Research created a Social Technographics®, classification system that places consumers into six overlapping levels of preferred participation (see Forrester’s Groundswell site and book for more details — highly recommended by BrandCottage). This week, Forrester announced a seventh rung, the Conversationalists, to account for “the very active communication style that has arisen recently within social media platforms like Twitter and Facebook,” said Forrester Analyst Emily Riley in her blog post, A New Rung on the Social Technographics Ladder.


To clarify, the bottom of the ladder represents the most passive level of social media participation; at the top of the ladder, we find the Creators, the most active social media participants. With each brand and social media program, marketers are wise to account for the predominate style or, more likely, styles of their target consumers.


Here’s how consumer social media styles break down, from top to bottom in terms of levels of engagement, according to data from the groundswell blog (note that Forrester has placed Conversationalists between Creators and Critics.:

• Creators, 24 percent of adults.
• Conversationalists, 33 percent.
• Critics, 37 percent.
• Collectors, 20 percent.
• Joiners, 59 percent.
• Spectators, 70 percent.
• Inactives, 17 percent.

In practice with our clients, rather than getting too hung up in the profile percentages of a company’s target consumers, BrandCottage thinks it’s best to account for all the styles in creating a well-rounded social media program. The goal of any social media program, when done correctly, should be to move consumers as far up the engagement ladder as possible, while still leaving room for spectators and joiners to get value from their social media interactions with your brand.


However, we most certainly need to account for the growing number of Conversationalists on sites such as Twitter and Facebook.


“Conversationalists intrigue me,” said Josh Bernoff in the groundswell blog. (Bernoff, along with Forrester’s Charlene Li, are the authors of Groundswell. ” They’re 56 percent female, more than any other group in the ladder. While they’re among the youngest of the groups, 70 percent are still 30 and up.”


“By following Conversationalists, you get free consumer insights,” noted Riley in her blog. “Conversationalists are your customers and they are talking about you. Listen to them.”


Indeed. Listen and begin to engage with your consumers. Participation on the high end of the ladder will continue to grow. If you haven’t already, now is the time to build a solid social media foundation.


Related BrandCottage posts: Why I’m a Power Tweeter on Twitter and The Essential 7 Ps of Social Media Relations. Also, see PR Squared’s blog post on Forrester’s Social Technographics Ladder.


Barry Lawrence is a BrandCottage partner in charge of public relations and social media relations.