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Online Advertising up 15% and TV ad spend down 5% - no downturn for Search.
December 8th, 2008 by Frank Grasso
Neil Shoebridge’s article in today’s Fin Review reports that ad revenue is going to fall 2.9%.
According to Starcom Media Annual survey or Marketing and Media executives, above the line media is bearing the brunt of the cutbacks, online and pay TV are the clear winners moving forward.
|
Changes in revenue by sector |
2007/2008 % |
2008/2009 % |
2009 – 2010 % |
|
Metro Free to Air TV |
+5.1 |
-5.0 |
-4.0 |
|
Regional Free to Air TV |
+6.5 |
-4.6 |
-3.3 |
|
Total Free to Air TV |
+5.4 |
-4.9 |
-3.8 |
|
Metro Newspapers |
-0.5 |
-9.8 |
-6.7 |
|
Regional Suburban Newspapers |
+10.4 |
-4.7 |
-2.7 |
|
Total Newspapers |
+3.9 |
-7.6 |
-4.8 |
|
Magazines |
+4.1 |
-6.0 |
-5.0 |
|
Radio |
+5.3 |
-5.0 |
-1.0 |
|
Outdoor |
+17.3 |
-3.0 |
-1.0 |
|
Cinema |
+11.8 |
-10.0 |
-4.0 |
|
Online |
+27.0 |
+14.0 |
+10.0 |
|
Pay TV |
+27.9 |
+14.0 |
+10.0 |
|
Total |
+8.0 |
-2.9 |
-1.4 |
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This entry was posted on Monday, December 8th, 2008 at 2:25 pm and is filed under Search Industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
December 8th, 2008 at 2:47 pm
Interesting reading, fits with our own sales statistic with record sales revenue in October & November (a trend set to continue).
Professor Corkindale of UniSA also recently commented, in Buisness SA magazine, that many companies would continue with Online advertising during difficult times at the expense of traditional media.
December 8th, 2008 at 2:57 pm
I would’t be surprised if the increase in search spend and decrease in tradional spend is even more pronounced. I suspect not only will companies decrease their allocated TV, etc budgets, but as the year progresses they will start to divert some of their allocted above the line media spend into things such as seacrh marketing where they get more cost effective and measurable results.
There is no doubt that online spend will be clear winner moving foward, but it will be interesting to see by how much.
December 8th, 2008 at 3:10 pm
Attitudes don’t always predict behavior – the flaw with this kind of survey is that you are asking people to predict what they are going to do in the future.
If you ask a smoker will they give up smoking in the new year their attitude will be to give up the filthy habit but the next time they at the pub with their mates and someone sparks up a cancer stick, their behavior will zip into auto pilot and before they know it they are smoking.
It is great to see that marketers and media executives have the right attitude to online spending but they have to pluck up the courage and follow through with their behavior. If they do – I predict that the numbers in this survey will be surpassed. In my experience, most advertisers still under spend online.
December 9th, 2008 at 11:09 am
When Colonel William light developed his architectural blue print for Adelaide, Wakefield Street was planned to be the retail centre for Adelaide, even today the wide and grand boulevard lays evidence to this intention.
But when the railway station was located at north terrace, basically the other side of the city , Rundle Street and its surrounds developed into the premier retail prescient of the city.
What does this mean? Retailers who followed Colonel William light went bankrupt , and those that followed the consumer got rich