Recent reports say digital ad spending is growing
by leaps and bounds and increasing its share of total
marketing budgets. You might think that has to be bad
news for television, but another new report says television
is not being displaced and continues to be the number
one medium for marketing dollars.
“Online and digital advertising is growing fast, but
not at the expense of television. To be sure, the landscape has
changed. tThe advertising mix,
previously dominated by traditional media,
has seen U.S. Internet ad spending grow in share from
15.4% in 2009 to a projected 25.6% in 2015.
Even so, television will continue to grab the lion’s share
of advertising dollars, estimated to capture $68 billion in
total U.S. spending and 39% of total share through 2015.
While many had predicted that online video viewing,
made possible through services like Hulu, YouTube
and Netflix, would take viewers from traditional TV, the
whitepaper says it seems we have an insatiable appetite
for media, with more people interacting online about their
favorite TV shows — and 40% using an Internet device
while watching TV. With American’s strong appetite for video
entertainment, experts are predicting a boom in growth
for high definition (HD) TV advertising. Until now the cost
of distributing an HD ad has been 5-10 times that of a
standard definition (SD), so many advertisers have been
running SD ads, which look cut-off or shrunken in HD.
A survey of 250 marketers found that
their companies now devote an average of 25% of their
marking budget to digital efforts. Multiple digital channels
are being utilized, including company websites, social
media and digital advertising.