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Dear Reader ,
There are so many things going on in the wonderful world of advertising, some things affect us, some do not.
Interactive media spending overtakes newspaper is the topic of an article is this month's newsletter. This does not mean a lot to the average local business due to the difficulty in understanding how to utilize the Internet for a local business, other than couponing.
AAMCO is breaking its largest ad campaign ever, about $30 million, targeting car owners whose local dealership may be closing. This is important and local auto repair shops, body and paint shops, and other local automotive related business should follow this lead. Auto purchases are off 50%, people are hanging onto Bessie and spending money to repair or spruce up their automobiles. If you are in the type of business, how are you letting people know where you are and how you can help them?
Spot advertising on television is down 15.6% in the top 100 markets and down 28.9% in the 100+ markets. Local businesses can drive a hard bargain with their local television stations and get a good bang for their buck.
With Circuit City's demise, the general thinking was that Best Buy, Wal-Mart and Amazon.com, would be the beneficiaries of the reduced competition. But the Wall Street Journal reported that it seems some of the smaller, regional chains (like hhgregg, Conn's and P.C.Richard) are all pursuing expansion agendas. About $11 billion is up for grabs. Can your business make a play for any of this business?
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Interactive Media Overtakes Newspaper Ad Spending
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 Interactive media will represent nearly one of every five dollars spent by marketers on media in the U.S. next year, according to estimates released Wednesday by WPP's GroupM unit, the largest buyer of media in the world. The agency holding company's new global ad spending forecast predicts interactive media, primarily online, will represent 17% of the U.S. advertising marketplace in 2010, up from 15.4% in 2009, and making. That makes interactive the third largest medium in the U.S., behind television's 44.2% share, and magazine's 18.4% share of 2010 advertising budgets. According to GroupM's estimates, interactive media will overtake newspaper's advertising share this year. Newspapers, which had a 14.8% share of U.S. ad spending in 2008, will fall to a 13.6% this year, and a 12.4% next year. Interactive media had a 13.9% share in 2008.
Radio's U.S. advertising share also continues to erode, dropping to 5.6% this year, from 6.0% in 2008. GroupM predicts radio's share of U.S. ad spending will drop to 5.2% in 2010.
Out-of-home media spending remains steady at 2.7%.
While the U.S. isn't the largest interactive media marketplace in the world in terms of penetration, it is the biggest in terms of advertising volume. While the GroupM report does not break out the components of interactive media, it estimates that marketers will spend $23.9 billion on interactive media in the U.S. in 2010, representing 39.9% of the world's $59.9 billion interactive advertising marketplace. |
Internet Accounts for One Third of Consumer Media Day
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According to a recent report by The Media Audit, in the  past three years , the average U.S. adult has nearly doubled their daily use of the Internet as the average U.S. adult spent 2.1 hours per day online in 2006, compared to 3.8 hours in 2008, an 81% increase over three years. As a result, the Internet now represents 32.5% of the typical "media day" for all U.S. adults when compared to daily exposure to newspaper, radio, TV, and outdoor advertising.
Even those who are considered heavy newspaper readers spend about as much time online today as the typical U.S. adult. According to the report, heavy newspaper readers, those who spend more than an hour per day reading, currently spend 3.7 hours per day online. In 2006 the Internet represented only 18.4% of a heavy newspaper reader's "media day", but today it represents 28.4%.
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A Thought from Roy Williams |
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Roy Williams, "Monday Morning Memo", is a favorite of ours (check it out at www.mondaymorningmemo.com).
One of his thoughts:
How can I get more customers?
USUAL ANSWER
Classic marketing revolves around the question, "Who is your customer?" Marketers study surveys, evaluate data and observe customer characteristics in the hope of more narrowly defining your "core customer" and thereby increasing you ability to more efficiently target these people. The assumption is that if you can clearly identify who is buying from you, you can find efficient ways of reaching out to people just like them.
BACKWARDS ANSWER
Instead of looking at who you are getting and why, take a look at who you are not getting and why you are not getting them.
1. Who isn't coming to you?
2. Why are these people not coming to you?
3. Are you prepared to broaden your message to appeal to people who haven't been attracted to you in the past?
GOSH. That little window of insight reveals a whole new horizon of possibilities, doesn't it?
The marketplace pie is shrinking for most business categories.
If, in fact, fewer customers spend fewer dollars in your category in 2009 than they did in 2008, doesn't it make sense that you enact a plan to increase the size of your slice?
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