Mixed Bag of Advertising Projections for 2012

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!

Featured image courtesy of  Thomas Hawk via Creative Commons.

 

Making Sense of the New Media Jungle

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.

 Featured image courtesy of peruhasdoneit via Creative Commons.

Is Social Media Marketing “Gaga” for Businesses?

Arguably, in 2008, social media emerged as a marketing staple. So, what have we learned about the benefits of social networking? Does everyone benefit: business-to-consumer and business-to-business companies? Or, is social media just a tool for Lady Gaga and other megastars?

SmartPulse, a quickie poll from SmartBrief on Social Media, asked marketing leaders to identify who has most benefited from social media engagement. Top on the list of beneficiaries:

  • Business-to-consumer companies (32 percent).
  • Celebrities (31 percent).

In the early stages of social media experimentation, I’d say that’s about right. Does it mean that social media isn’t working for others, such as media companies and business-to-business organizations? Of course not. There are hundreds of case studies demonstrating the power of social engagement for all kinds of businesses.

The Right Social Media Mindset

What is true, frankly, is that business-to-consumer companies are often the leaders in innovative marketing. They’ve demonstrated their prowess in traditional marketing and they continue to lead the way with new media strategies. Why? Because business-to-consumer companies make brand image part of the corporate fabric (think Apple and Ford, for example).


Social media cannot be thought of as just another marketing gimmick. In her SmartBrief blog, social media consultant Mirna Bard is right on target: “It takes a mindset shift, time, willingness to learn and commit, as well as consistency. These elements combined with the right strategy and tools can be powerful for any business or person, whether they are using it for training, internal communication, prospecting or even to become a celebrity.”


In other words, it takes a 360-degree cultural shift and commitment for social media to work. It is no small task for some organizations to move from defensive, controlling, top-down driven organizations to ones that are open to 24/7 engagement and, yes, even criticism.

Looking Ahead on Social EngagementBorn this way

In The State of Corporate Social Media in 2011, from the Useful Social Media Community, 50 percent of U.S. companies said they still do not have a staff member devoted to social media. However, all U.S. companies surveyed said that social media is becoming a more important part of the marketing strategy and 29 percent project social media budgets to increase by 100 percent or more in 2011.


“Whilst marketing and communications retain their dominance as the main reason companies use social, customer service, employee engagement and product development all see significant growth [in the United States and Europe],” according to the report.

What is Social Media Worth?

Is social engagement worthwhile? The real answer to this question, for many companies, is unknown. Most do not measure social media ROI. But when you look at leading companies — Dell, Starbucks, Ford, Coca Cola and Apple, for example — it is easy to see the power of social media as a marketing tool.

Companies are still learning about social media’s power. For some, the transition has been easy (they had open cultures to begin with). For others, it’s going to require more than establishing a Facebook page or Twitter feed. It will mean substantial cultural shifts.


Or, as Lady Gaga sings: Baby I was born this way.

Featured image credit: Real Hollywood


The 21st Century Leader

Tom Moradpour, one of my favorite Twitter pals, has issued a rallying cry: same-day tweeting by the marketing community on a common topic.


Today’s Twitter marketing topic is leadership. Tom is busy gathering bloggers on this topic — proof he is already a leader of the 21st Century.


Every business school offers study on business leadership, providing students with leadership and case studies. Post graduation, there is a plethora of leadership magazines, Web sites, newsletters, conferences and seminars. I admit, I’ve done my share of studying on the subject. And still do.


But I want to propose the hypothesis that many great leaders are born, not made. Early in life, leaders demonstrate leadership-favorable personality and intellectual traits. These traits are recognized, enabling GREAT leaders to continue to hone their leadership skills over the course of a lifetime.


Here’s my list of born-leader characteristics:

  1. Self-Motivated. We all knew the kid in High School who did it all. Star athlete, exemplary student, class president, well-liked. This is almost always someone who will become a leader. An inner voice drives them. Their God-given talents do not go undeveloped. Then there is the kid who was quiet, but always doing something amazing — volunteering in Africa, writing a blog, helping those in need. These too are self-motivated leaders.
  2. Builders. Leaders are born with a desire to build. Whether it’s a business, a sports team, a charity, a school fund-raiser or some other passion. Early on, leaders build communities.
  3. Intuitive. One of the most important skills in leading a team is the ability to develop instincts and empathy. It is critical to understand how a person feels or thinks when in his/her shoes. Leaders have a high level of this social functioning. Most leaders have the gift of “reading a room” and knowing how to drive a conversation to successful results.
  4. Inspiring. Leaders inspire others to join in the development of missions and visions. It’s a very delicate balance. Most leaders hire incredibly smart people. Great leaders know how to inspire smart teams to solve problems.
  5. Hardworking. The best educated people in the world rarely experience success without a lot of hard work. Work ethic is interrelated with motivation, drive and ambition. The best leaders are more often than not the hardest workers in the organization. Anyone can be taught a given work skill, but a solid work ethic comes from within.
  6. Adaptable. This may be the most important leadership trait of all needed in the 21st century, when technology and the business climate change rapidly. Modern leaders are always learning, always watching the competition, always identifying the obstacles and opportunities, and never resting on what once worked. In the 21st century, forseeing where the trends are headed, where technology is going, and how companies must be flexible is critical to success.
  7. Confident. A final, but essential ingredient, great leaders are confident. But just as important, great leaders also inspire confidence in others. They know the light that shines on others reflects back on themselves.



Kudos to Tom for initiating this important topic and providing us all the opportunity to learn — from each other — on how to become better leaders.

 Featured image courtesy of Pete Ashton via Creative Commons.

Why Are People on Twitter so Happy?

Gretchen Rubin is one of the most inspirational people I’ve met on Twitter. She is author of the best-selling book, The Happiness Project. The book chronicles a year in which Gretchen “test drove” the many theories on happiness.


Her Web site is full of great resources, such as Six Words on Happiness, Twelve Personal Commandments, daily quotations and The 2011 Happiness Challenge. She has a lot to say about what makes us happy. I realized that being on twitter is actually a happiness booster. Not that she says it in so many words. But being with others, helping others, staying positive are all happiness boosters….and also what twitter is all about! I’ve noticed after I’ve engaged with others on twitter, I always feel happier.

On reading her blog post on some happiness boosters that aren’t so good for you,

  • Using treats as comfort rewards.
  • Letting yourself off the hook.
  • Turning off your phone.
  • Expressing your negative emotions.
  • Staying in your pajamas all day.



Great advice. #tweet on.

 Featured image courtesy of shawncampbell via Creative Commons.

The Real Game is the Super Brand Bowl

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.


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.

 Featured image courtesy of Jayel Aheram via Creative Commons.

Happy New Year Marketers from BrandCottage

2011

Welcome back to work and Happy New Year!  After a brief respite, we are ready to begin a new journey here at BrandCottage. I was reminded over the holiday break how important it is to take time off, slow down, find time to reflect on the past and prepare for the future. With so much advanced technology and an always-on business mentality, thinking time is all too rare.

BrandCottage Reflections

BrandCottage accomplished a great deal in 2010, both for ourselves and our clients:

  • 2010 marked BrandCottage’s most rapid growth in the history of the company. This, coming off a down year for the industry in 2009. To say we were surprised and delighted is an understatement. This time last year, few knew where marketing was headed. There was much doom and gloom. But marketing began to see a rebound in 2010. In talks with our clients, they value marketing more than ever.
  • Our digital brand offerings grew at record speed in 2010, both for social media and for paid digital advertising.
  • Emerging brand technologies propelled us to new and exciting platforms. Throughout the year, we immersed ourselves in marketing’s transformation.
  • We continued to gain new clients in new industries and we are proud to say that we were responsible for helping many of our long-standing clients evolve and transform as well.
  • New technology also helped BrandCottage grow: video chat, virtual meetings, text messaging, conference calling, social media and many other solutions helped us run even more efficiently as a virtual agency.
  • Meanwhile, we never dismissed our core values: veteran marketing chops, can-do attitude and client-first priorities.


BrandCottage Resolutions for 2011

  • We can never forget, as an agency, that we are in the client-services business. BrandCottage will continue to improve client services in 2011.
  • Emerging technology is transforming marketing and branding. Everyone in the marketing industry, including BrandCottage, must be dedicated to continuous learning, sharing and engaging to stay on top of emerging trends.
  • Giving back to others is far more rewarding than receiving. BrandCottage will continue to increase its commitment to helping others.
  • The value of hard work never goes out of style. We work extremely hard at BrandCottage. But we also will find some time for more fun.



I look forward to seeing all of you this year!

Featured image courtesy of manoj8555 via Creative Commons.

Where Have All the News Junkies Gone?

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.

Featured image courtesy of hebedesign via Creative Commons.

Advertising’s Recovery: Not all Media Created Equal

Overall, optimism is growing in the advertising industry. However, not all media are created equal in projections for U.S. advertising spending in 2010 and beyond. It remains a difficult time for print, while television seems to be holding its own. Digital advertising continues to grow, and may have even benefited from the recession.


(See related blog: Advertising Spending Looks Up in 2010.)


“The rise of the Internet continued uninterrupted during the downturn — 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,” said ZenithOptimedia, in a press release forecasting ad spending for 2010 and beyond.


Television suffered less than other media, ZenithOptimedia noted, while “newspapers and magazines have clearly suffered the most from the downturn.”

Ad Predictions by Media Type

ZenithOptimedia predicts the following for 2010 global advertising spending by media:

  • TV: Up 4.36 percent with 40.3 percent market share.
  • Newspapers: Down 3.8 percent with 21.7 percent market share.
  • Internet: Up 12.9 percent with 13.9 percent market share.
  • Magazines: Down 4.4 percent with 9.6 percent market share.
  • Radio: Down 0.5 percent with 7.5 percent market share.
  • Outdoor: Up 1.72 percent with 6.5 percent market share.
  • Cinema: Up 3.07 percent with 0.5 percent market share.



Communications firm Carat, as reported by MarketingProfs, expects the United States — in specific — to follow a similar ad-spending pattern:

  • TV: Up 4 percent.
  • Newspapers: Down 8.3 percent
  • Online: Up 10 percent.
  • Radio: Up 2.5 percent.
  • Magazines: Down 5 percent.



Last, but not least, in its April revised forecast (via MediaBuyerPlanner), MAGNA raised its 2010 expectations, predicting a 3 percent rise in U.S. ad spending, including revenues from the Olympics and spending on elections, to 3 percent. This is MAGNA’s second correction of 2010, including a January forecast predicting flat growth for U.S. ad spending.


MAGNA’s U.S. outlook is bullish for the Internet and TV, but bearish for print:

  • Search: Up 16.8 percent.
  • Local TV: Up 16.2 percent.
  • Internet: Up 12.8 percent.
  • National TV: Up 10.2 percent.
  • Magazines: Down 6.9 percent.
  • Local Newspapers: Down 10 percent.
  • National Newspapers: Down 11 percent.



Industry revenues will rise from $40.5 billion in the first quarter of 2009 to $41.3 billion during the first quarter of 2010, according to a MAGNA press release.


“Among the various sectors, television remains the largest advertising platform in the United States,” MAGNA said. “The $56.0 billion dollar segment will grow by 9.8% during 2010, slightly higher than our prior 8.5% expectation. This growth will erase 2009’s losses and return the sector to levels observed between 2006 and 2008.”

What Media Executives are Saying about the Future

Overall, ad spending is expected to grow an average of 3 percent in 2010, while interactive ad spending is expected to grow 10 percent, according to an AdMedia Partners online survey of global senior business executives in advertising, marketing services, digital marketing and related industries.


The majority of media executives (65 percent) said that online revenue will account for more than 50 percent of total revenue within the next five years at business-to-business publications. For newspapers, 44 percent said online revenue will outstrip print within five years and 38 percent said that it is likely to take 5-10 years.


Mobile and social media marketing are also projected to grow.


“These evolving media and service offerings are considered to be important growth opportunities increasingly requested by content owners and advertisers,” according to the AdMedia Partners report. “Just like the early days of the Internet, media companies are experimenting with various business models to monetize these opportunities.”

Featured image courtesy of Thomas Hawk via Creative Commons.

Advertising Spending on the Rise in 2010

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.