Mixed Bag of Advertising Projections for 2012

Thursday, January 12th, 2012

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.

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Making Sense of the New Media Jungle

Wednesday, September 28th, 2011

By Patricia Wilson, founder of BrandCottage

Gone are the glory days of Mad Men when ad campaigns consisted of a glossy television spot that ran on three networks, reaching 90 percent of U.S households. There are now many new devices and platforms. There are new consumer-controlled choices including time-shifting, downloading and sharing.


Everything about media planning and buying has changed dramatically. We have moved from:

  • A passive ad market to an engaged ad market.
  • A brand-controlled ad market to a consumer-controlled ad market.
  • A few brand managers controlling the brand to a social universe controlling the brand.

 

The Multidimensional Brand Jungle

Remember when a brand media plan had just three mediums: TV, Print, Billboards?


Today’s media landscape is cluttered with thousands of choices, driven largely by technological innovations. And there is no sign of media proliferation slowing down.


Traditional media has evolved to multi-platform channels. TV is no longer just one screen, but now four (TV, computer, tablet and mobile). Print is no longer just print but tablets now offer fully interactive magazine experiences on mobile devices. Digital ad buying is much more than banner buys. Viable digital media options now include ad networks, rich media, video, behavorial targeting, retargeting, contextual, search, mobile, email and social media.


In addition to considering “where” strategies, media planners must also consider “how” strategies for complex ad technology solutions. In addition to knowing the right target segments for ads, marketers must also know how to deliver ads in the most meaningful ways to consumers.

Making Sense of the Jungle

More than ever, CMOs and marketers need experienced media strategists working on behalf of their brands. Media planning strategists must serve as valuable neutral parties who can filter, evaluate and recommend the right media tools. However, too many media planners fall into one of two camps: classically trained in traditional media with little knowledge of digital media capabilities or digital planners with little knowledge of integrating digital initiatives into the larger communications plan.


Successful media plans are best served by classically trained media strategists with proven media planning skills and plenty of experience across a range of clients and brands. Today’s best media planners have evolved into the digital space, especially in terms of the tools required to deliver and engage consumer targets. Proven media planners are well trained in gathering consumer insights, synthesizing business objectives and developing a fully integrated plan.


In short, the best media planners embrace a holistic planning approach with no bias for one media option over another. They analyze and develop the optimal media mix in which to achieve objectives against a given target audience.

Asking the Right Media Planning Questions

Here are some critical media planning questions that marketers must ask to develop a successful media plan:

  • What is the objective of the media plan? Awareness? Web site traffic? E-mail capture? Social engagement. Word of Mouth generation? Customer data? Coupon redemption?
  • How will the media plan success be measured?
  • What is the budget?
  • What is the geography to be served?
  • Who is the target segment?
  • Is there purchase seasonality? Times of heavier spend and greater opportunity?
  • What are the creative considerations?



It is also important to ask the right questions to determine target segments. For example:

  • Do affluent business travellers use FaceBook as much as Gen Y?
  • What about mobile usage among moms?
  • In mobile, is SMS as effective as mobile apps?
  • What social networks index highest among heavy fast food eaters?
  • In digital, who is really watching video?



Answers to these questions can often be found using syndicated research like MRI, MMR, comScore, Nielsen, proprietary customer insights and a variety of other tools.


Finally, it is essential to understanding the delivery of ads. This reguires a deep understanding of ad technology solutions, along with an understanding of how to integrate technology with data to drive efficiency and target reach. Critical areas to consider include:

  • Dynamic creative delivery options.
  • Publisher partnerships and sponsorships.
  • Audience data warehousing.
  • Demand-side platforms.
  • Social Media technology.
  • Video serving options.



Media and technology will continue to evolve. Return on media investment will continue to be driving forces for every brand’s C-suite, not just CMOs. Experienced, well-rounded media planners will be critical in helping companies navigate swiftly changing media jungles to carve out the best paths to brand success.

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

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The Real Game is the Super Brand Bowl

Friday, February 4th, 2011

By Patricia Wilson, founder of BrandCottage

Yeah, the Super Bowl is cool. But as a media strategist, I can’t wait to weigh in on the most important kickoff of all — the sponsors of the greatest game on turf.

A Sneak Preview



Everyone understands the humongous advertising reach gained by a 30-second Super Bowl spot (106 million viewers last year) even if there is debate on the wisdom of spending so much money in one day. In the advertising industry, Twitter, Facebook, YouTube and other social media channels have been alive — for weeks — with discussions and pre-game anticipation and early predictions on winners and losers.



In fact, all the social media discussion around Super Bowl ads has become an important channel in its own right — expanding the already huge Super Bowl viewing audience with millions of additional online impressions. This allowed unprecedented integration of traditional and digital media.



But here’s what’s new. Advertisers are not only stirring the pot of excitement about the debut of their ads on Super Bowl Sunday, they are even providing sneak previews, via social channels.



Brands such as Audi, Best Buy, Budweiser, CareerBuilder, Chevrolet, Coca-Cola, E*Trade, GoDaddy, Kia, Mercedes-Benz, Snickers, Teleflora, 20th Century Fox and Volkswagen “are all over social media trying to drum up interest in the commercials they plan to run during Super Bowl XLV on Fox on Sunday,” according to The New York Times (Before Sunday, a Taste of the Bowl).

The advertising industry  is also capitalizing on the Super Bowl advertising frenzy. Check out Brand Bowl 2011, from Mullen and Radian6. The site, in short, tracks Twitter conversations to determine real-time audience reaction to the spots.



You can certainly expect Tweets from me at @BrandCottage. And I look forward, as I do every year, to engaging with other marketers and ad enthusiasts. You can follow the conversation on twitter and join in the fun with hashtag #brandbowl.



Oh, and good luck Packers and Steelers.


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

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Where Have All the News Junkies Gone?

Tuesday, November 9th, 2010

By Patricia Wilson


Where have all the news junkies gone or, more appropriately, where are they going? And what does the migration from print to digital — if its exists — mean for marketers and the advertising agencies that want to reach news consumers?


Consider these transformational changes in news consumption:

  • Print newspaper circulation continues to decline. The Audit Bureau of Circulations, in October, found that 379 daily newspapers reported an average 10.6 percent drop in circulation (see The New York Times story).
  • Purchases of U.S. magazines at news stands and other retail outlets, according to the Audit Bureau of Circulations, fell 9 percent in the second half of 2009, while subscriptions fell 1.1 percent in the years second half (see msnbc.com story).
  • 28 percent of newspaper executives responding to a recent survey by the Associated Press Managing Editors, a group of newspaper executives, said their publications are considering online fees (see USATODAY.com story).
  • According to a survey by Editor and Publisher (itself, a magazine that is shutting down), 55 percent of readers said they would be very or extremely unlikely to pay for online newspaper or magazine content (see News Consumer story).
  • At the same time, 81.5 percent of the online paid subscribers of The Wall Street Journal and Consumer Reports consider them to be good, very good or excellent value, according to the Editor and Publisher study.
  • To really complicate matters, 26 percent of Americans get news on their mobile phones, according to a new Pew Research Center study, Understanding the Participatory News Consumer.



For advertisers and marketers who are wondering where to find their target consumers in this jungle of media usage patterns, it’s time to remember:

  1. All good marketing starts with clear objectives.
  2. Every media can accomplish something….and most often not the same objectives.



Online news is fast, it’s searchable and it saves valuable time. But online news is also highly fragmented. Print, on the other hand, is surprisingly engaging and encourages readers to take deeper dives. They both have their place and, as media strategists, we have to make the right choices for our brands.


For example, I can’t imagine the brand launch of a new car design or Prada jeans without thoughtful print campaigns. Or products for babies without being in Parent magazine, where new moms and dads seek information-rich articles, photos and sidebars. For the same reasons, radio is intrinsically a good bet for fast-food restaurants, just as digital advertising is fabulous for reaching highly targeted segments at places in their lives where they are close to a purchase decision such as taking a trip to Europe, for example.


It’s more important than ever for marketers to get back to understanding what each media type can and can’t do. New media, without a doubt, is growing and important. But there is still a place in the media plan for traditional media.


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

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Advertising Spending on the Rise in 2010

Monday, May 17th, 2010

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.

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