A sign of trouble for Television advertising revenue? A recent report indicates that after being a top advertising revenue generator for decades. Television advertising has relinquished its position to what is perhaps its rightful successor; digital media advertising.
Online spending budgets increased 4.6% to £1.752bn in the first 6 months of 2009, while Television expenditures decreased 16.1% to £1.639bn.
Advertising in general fell 16% when compared against the same period in 2008. The study was performed by the Pricewaterhouse Coopers and the Internet Advertising Bureau.
Classified ads, content targeted display ads, e-mail campaigns, and search engine optimisation are all considered forms of online advertising.
Companies are shifting their budgets and opting for the the often cheaper, more targeted methods available from digital advertising and Search engine marketing.
Search engine optimisation and PPC take over
The recession has brought a significant change to the budgets of advertising related to digital technology, Expensive television campaigns are quietly being replaced with PPC ads, and Search engine optimization techniques.
The editor of industry news website New Media Age, said that tough economic times have accelerated the drop in TV advertisement budgets, with television being overtaken by digital media a year sooner than expected.
Another Group, Thinkbox, the marketing body for the main UK television broadcasters, said the figures do not compare well.
Mixed Online Marketing Budgets, Vs. One TV Advert
Online marketing budgets consist of many things. Items like e-mail, classified ads, display ads and the largest segment, search marketing efforts. Should they should be judged separately? Are all online advertising methods the same. Not really.
The Internet is an amazing technology with many different opportunities to engage in marketing activities that perform in a variety of different methods. Still, it is interesting but thoughtless to combine all the money spent on every method of online advertising into one lump sum and declare that television is dead.
Television advertising is still the most effective advertising delivery method with it’s “pound for pound” value. However, what really works is when the two mediums are put together, combining television with digital media can be a very effective method of advertising for a website.
Television and digital media should not be seen as competition. They should work together in harmony, right along side each other.
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