I was doing some of my daily news digging when I came across the following chart on MarketingCharts.com showing the Share of Ad Spending by Medium as of September 2008. With all of the discussion these days about TV and print advertising suffering during the (brace yourself for the phrase we all hate) economic downturn it will be interesting to compare these numbers to data a year from now.
What will change by next September? Well I would like to think that the share of Internet ad spending would at least increase 15% (granted that is no small increase) but that all depends on whether the old school traditional marketers feel enough pressure to take the leap and increase their footprint on the Internet. I would think the infinitely measurable methods of marketing on the Internet would be the like the light at the end of the tunnel during these tough times. There is no question advertisers are shrinking away from the costly forms of traditional advertising they are so used to such as newspapers and television:
- The Ten Most Endangered Newspapers in America - Time
- National Ad Spend on Radio Drops More than 20% in Q4 - MediaWeek
- CBS Cuts Dividends - Bloomberg: “The owner of the most- watched TV network also reported a 52 percent drop in profit.”
- Sponsors Splitting from TV Sports - Forbes
So that is what is happening with offline advertising but what about the Internet? There were many articles that noted sales were down for online marketing as well which is expected since there is less money to go around. That said, what it is interesting that the following articles indicate Internet advertising is being taken far more seriously in the face of tighter budgets:
- Online Advertising Grows at the Expense of Traditional Media - Digital Lifestyles:
“‘This research shows that while other forms of media are suffering from slowing spend, online continues to take a growing proportion of advertising budgets as brands increasingly recognise its impact, value and potential return on investment,’ said Alison Fennah, executive director of the EIAA.” (EIAA stands for the European Interactive Advertising Association)
- Online Advertising’s Appeal Grows During Recession, But Will Dollars Follow?
- Medill Reports
- IAB Reports Internet Advertising Grew 10 Percent Last Year; Outpacing TV - TechCrunch
- Internet Advertising will be Relatively Unscathed During Downturn - Economist.com
What Have You Experienced?
Is your company treating online advertising a bit more favorably lately? I would be very interested to hear your stories and opinions (email me at ross at stepforth dot com). I expect there are many that have seen the opposite reaction in their business but that side of the story is also very helpful to hear.