By Patricia Wilson


Finally, some good news on the advertising front. Recent forecasts indicate that advertising spending is climbing out of the recession hole.


(See related blog: Advertising’s Recovery: Not all Media Created Equal)


ZenithOptimedia recently upgraded its forecast for global ad growth in 2010 from 0.9 percent (estimated December 2009) to 2.2 percent (April 2010), the company said in a press release. After 18 months of consecutive downgrades, this is the global media services agency’s second upgrade in a row.


“Confidence in the global economic recovery, while tentative, continues to grow, and this improvement has been apparent in ad markets across the world,” ZenithOptimedia said. “Ad expenditure is accelerating in bullish developing markets, while in the developed world the downturn is coming to an end more quickly than expected.”

2010 Advertising Forecast: Partly Sunny

It’s a turnaround happily predicted by others in the advertising industry. Carat, as recently reported by the Guardian, also adjusted its outlook, predicting advertising to grow 2.9 percent this year, up from the 1 percent the company forecasted in October 2009.


Likewise, the results of a new AdMedia Partners survey indicates that worldwide senior business executives in the media business expect ad spending to grow 3 percent in 2010.


Finally, in MAGNA’s recent update, the company predicted that, excluding political and Olympic advertising on TV, “on a normalized bases the U.S. advertising economy will grow by 1.6 percent during 2010, ahead of our prior forecast of flat year-to-year growth.”


MAGNA’s long-term forecast is also rosier: “As expectations for the broader economy have improved over an extended time-frame as well, we are increasing our long-term forecasts, and now expect growth to average 3.5 percent between 2010 and 2015, up from +2.3 percent previously.”

Digital Advertising Leads the Charge

While traditional advertising media suffered the most from the global recession, digital advertising continued to grow and, “in fact, the downturn probably accelerated the shift of budgets from traditional media by focusing advertisers’ minds on the importance of measurable return on investment,” according to ZenithOptimedia.


This was confirmed at a recent Ad Age Digital Conference in New York where corporate speakers agreed they were now spending a bigger portion of the advertising pie — 20 to 25 percent — on digital advertising.


“We expect 10.7 percent growth in online advertising revenues, led by 17.0 percent growth in paid search,” MAGNA said. “Much of this growth will be due to the increasing ease with which many advertisers — especially those who are endemic to the Internet as well as small and mid-sized companies — can accomplish their goals through digital media.”


In the AdMedia Partners online survey, more than three-fourths of media executives said they are considering the expansion of online services or are entering into new online marketing businesses, including:

• Social media marketing (55 percent).
• Mobile marketing (48 percent).
• Search marketing (41 percent).
• CRM/Analytics (41 percent).
• E-mail marketing (35 percent).

Media Spending Considerations

In the past, marketers have typically planned year-over-year advertising increases. However, the 2009 recession has changed that dramatically, with most brands putting cost-cutting measures into place. The forecasts mentioned above indicate that spending will rise again in 2010, albeit cautiously. And with increased demand on media inventory, we can expect to see increases in media pricing — dramatic increases, in some cases.


BrandCottage will continue to report on these trends as we move through 2010.


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

By Patricia Wilson


We are very pleased to announce (see press release) that BrandCottage has teamed with The Farm, a creative advertising and production services agency, to launch a new USA TODAY campaign, What America Wants.

The campaign starts today and targets advertisers and media buyers — essentially people just like us. The campaign emphasizes USA TODAY’s continued leadership role and connection with its readers via print, USATODAY.com and on the iPhone.


By the way, if you haven’t seen USA TODAY’s mobile application, you really should. It’s impressive. It “share article” feature fluidly links with Twitter, Facebook, text and e-mail applications to enable the easy sharing of information with your communities.


The campaign is running print and online advertising in trades such as Mashable, Adage, Adweek, Brandweek, Mediaweek, TechCrunch and CNNMoney.com. Ads will also appear on television, on Facebook and LinkedIn, and on elevator screens.


Campaign components also include guerrilla marketing and social media tactics.


The multimedia world is rapidly changing and this is producing many opportunities for small, experienced agencies. What wins today are strong ideas, speed and flexibility. We are humbled to be part of the USA TODAY brand initiative.


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.

By Barry Lawrence


BrandCottage is pleased to announce that one of its clients, Johnston & Murphy, is maintaining its long-standing tradition as shoemaker to the presidents. Johnston & Murphy recently presented President Barack Obama with a custom pair of dress shoes and boots.


We think this is a creative and remarkable service and marketing campaign, emphasizing Johnston & Murphy’s commitment to style and craftsmanship.


The Obama boots are especially interesting, inspired by a pair that Johnston & Murphy custom-made for President Lincoln in 1861. The company has handcrafted footwear for every American president since Millard Fillmore in 1850.


Johnston & Murphy created www.shoesofthepresidents.com to commemorate its 160-year tradition.


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

By Patricia Wilson


For online advertising providers, the honeymoon is finally over.


As a seasoned media planner, I was not surprised by a recent report designed to provide much needed damage control for the under-performing online advertising industry. The document, from the Interactive Advertising Bureau (IAB) and Bain & Company, highlights the many online advertising challenges being fac

ed by marketers. More importantly, the report, Building Brands Online: An Interactive Advertising Action Plan, attempts to provide a road map to improve the industry’s growing negative perceptions about the brand-building value of online advertising.

The IAB/Bain report is a much needed response to last year’s findings that online advertising inventory is highly undervalued by brand

marketers. At the heart of the problem, according to an Online Media Daily story:

. . . online sales organizations have lacked the sophistication necessary to turn the perceptions advertisers and agencies have about the value of online advertising . . .

The report also identifies five key obstacles that have kept marketers from shifting more of their budgets online:

• Online ad formats and creative have not evolved to meet marketers’ needs.
• Media companies lack category expertise when they sell to brand marketers and engage with them too late in the media planning process.
• Marketers want integrated campaigns instead of platform-specific media programs.
• While marketers see high value in online advertising and believe that it could be effective at all stages of the purchase funnel, current industry practices inhibit greater investment of brand ad dollars.
• Marketers express needs for differentiated services for their brands and believe that media companies and agencies have to meet those differentiated needs for online advertising to grow.

Measurement Intoxication

What I find most interesting is that the once-mighty “click” measurement is now out of favor, having underperformed miserably and showing no signs of being resurrected.


“Ultimately, marketers are looking for media companies to offer a true triple-play service model from direct response to awareness to high impact brand engagement,” said John Frelinghuysen in a press release. Frelinghuysen is a partner in Bain & Company’s media practice and lead author of the study.


As a classically trained media planner, I place a high value on measurability. However, just as with traditional media, we must be careful not to chase what we can measure – what fits under the microscope and what shows some ROI – just so we can rattle back some good news to CMOs and CFOs. Click rates, foe example, may NOT really be a true indication of what’s driving the Brand long term. We must avoid becoming over-intoxicated on the wrong digital measurements.


Despite all the Technorati talk of measurement over the past few years, it appears online advertising has come full circle. It is now faced with the exact same question we’ve always asked about media, including the traditional television, print, radio and outdoor channels: How do we best measure online advertising’s full impact on our brand?


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