I happened to stumble on an interesting article on Ad Age and thought I shared it and give my thoughts on it...
Here is the link to check out the article: http://adage.com/article?article_id=147740
Basically the article starts off talking about how officially the recession ended in June 2009 and collectively advertisers exhaled a sigh of relief. 2009 was a year that many advertisers and many in the Marketing industry would like to forget. It marked the first time that the Media 100's net U.S. Media Revenue had declined (3.8%) in revenue since being tracked in 1981. Just think about that for a second... since 1981 the nation's top media firms have consistently had positive returns until last year. That should tell you that the recession has not only affected consumers, prospects, and big corporations, but every industry including my field of marketing has felt the huge impact of the recession that we have arisen from and are trying to recover from as a nation. If it wasn't for Cable which managed a 4.3% gain... Media revenue would have been far worst.
2010 was a different story for the nations top media firms. In the first six month of 2010, reported media revenues for media firms climbed to 6.1%.
The big story however is the shift in Advertising medium rankings... The King is still Television. However, a shift happened at the number two spot with Internet taking over Newspapers. This honestly didn't surprise me much as Newspaper had by far one of its worst years with humongous declines in each of its main revenue sources: National Advertising (-26.2%), Retail Advertising (-24.2%), Classified Advertising (-38.1%), and Online Advertising (-11.8%). Newspapers are still trying to find the right formula to attract advertisers... but its increasingly becoming difficult as more Newspapers companies file for bankruptcy. It may not be too long till we see the Newspapers industry heading the way of the titanic.
However, lets shift our focus toward factors on what is making Internet one of the hottest media channels to use for advertisers.
First off, one of the great features of using the Internet is that it can help build and increase Brand Recognition for Business & consumer companies just like mass media, but the internet can also deliver vast amounts of information that is of relevance to the prospect or consumer. Think Direct mail that you get (commonly known as junk mail)
Additional factors on why Advertisers are preferring the Internet as an advertising medium source:
1. Reduces Cost - Probably the biggest attractive point of using the Internet. But there are multiple factors on how it helps reduce cost these include: Reducing the overall operating costs, lower prices, cost savings in order handling via reduced transportation costs (basically your paying for what you need), optimization of the supply base, and it gives the user control over spending and inventory. Quite a few advantages isn't it?
2. Saves Time - Enhanced marketing (I'll explain each tool in detail in later blogs, but they are mentioned) and customer service and enhances the use of personnel via instantaneous communications (Skype, Aim, email, etc)
3. Internet Media Tools - One of the great advantages of using Internet is the ability to track in real time how your ad or campaign is performing. There is no other media tool that allows you to do this! This allows the advertiser to effectively make the necessary modification to maximize the overall effectiveness of their ad.
Most people will know that the main dominant tools are SEO and SEM. However, there are many other tools at the marketers tool bag including: Banner Ads, E-Mail campaigns, Affiliate Marketing Relations, and Sponsorships. I'll blog about a few of these tools in later posts...
The benefits for Internet are numerous and you can bet that Marketers haven't hit the tip of the iceberg with the power of what the internet can do to help us increase the overall value in consumer/prospects lives. It shouldn't be a surprise to see why the Internet has arisen into the number two spot.
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