I’m sure most of you saw the front page WSJ article last week about Google and P&G. This is of great interest to me because it gets to the heart of one of my underlying hypotheses about why digital advertising will continue to grow at the expense of other media.
Right now brand marketers are way under-invested in digital marketing. All you have to do is see the chart below. TV has less than 20% of the time but 44% of the spending. Marketers are over invested in traditional media as compared to time spent there.
Sources: TNS Media Intelligence & Forrester Research
This has to change. The challenge, as I have learned from several of our client CMO’s is that it is really hard to spend money on digital, while it is relatively easy to shovel it out the door on 30 sec. TV spots.
We (agencies, researchers, etc.) need to work a lot harder to bring ideas to our clients on how to spend money and leverage programs via digital channels. As John Bell famously asks, if I spend another $100k on social media, what do I get?
TO’B
December 3, 2008 at 9:56 am |
[...] ability to dominate perception is quickly eroding. (Update, Dec. 3: Tom O’Brien makes this point in a very practical way.) To have insight into stable future earnings in an era where common perception is formed by [...]
December 3, 2008 at 10:09 am |
Tom this chart makes the point very practical … broadcast’s monopoly on attention is dead. I linked this to the SoCap&Brand series:
http://memeticbrand.com/2008/12/01/memetic-brand-social-capital-value-add-start-socializing
I hope that you will add a post to the the series.
Regards,
mc
December 7, 2008 at 3:34 pm |
The chart says it all – nice analysis and Bell is a wonderful thinker on this topic as well.
December 15, 2008 at 12:08 pm |
@ Michael thanks for thepointer.
@ Albert – I know this looks a little suspicious, but it really makes me think that marketers are still way under-invested in digital.
Thanks for the comments.
TO’B
December 19, 2008 at 11:09 am |
I posted a blog looking back from 2030 to 2009 to discuss how the economy was the catalyst for change in how advertising works. One of the things I brought up is the idea that “no one ever got fired for buy TV” was a joke. If I owned any large corporation and it was suggested that I sink a majority of my budget solely into TV they would be fired. TV has its place, it’s right next to online, Social Media, web video, email, mobile, experiential, etc. You can see it here:
http://mdurwin.wordpress.com
January 31, 2009 at 8:16 pm |
Hi Tom, Very nice and clean way to show the potential of digital marketing. – Sudipta
February 9, 2009 at 7:02 pm |
Thanks Tom, This statistics will help me to promote my ecommerce business among the clients.