Digital media remains a big driver of growth in global advertising and is likely to capture 33% of the global advertising pie in 2017. This is according to a forecast by GroupM, the world's largest advertising buyer. TV continues to attract the largest share of ad spend, although this will decrease slightly from 42% in 2016 to 41% in 2017. “Digital keeps surprising us,” says Adam Smith, a senior GroupM executive. “What's surprising is [that] the bigger the appetite for digital is, the bigger it gets.” He believes that digital’s growth is being driven by big increases in paid search, e-commerce and advertising on mobile devices. “If you look at the growth trajectory of digital, if it carries on taking a point or two of share from other media. Is TV threatened and, if so, what can we do about it?” asks Smith. He says more data and technology should be introduced to support TV marketing – including creating addressable ads that allow marketers to target consumers by household. Many TV executives in the US have argued that momentum is swinging back towards television as marketers become more wary of digital advertising problems such as click fraud. However, it appears that this may not be the case. Total advertising spend worldwide for 2017 is predicted to be US$547-billion, an increase of 4,4% on 2016, notes GroupM. The US and China will be responsible for half of the net growth next year. Emerging market India continues to be one of the fastest growing countries in the world when it comes to ad spend, with the country's ad growth forecast to be almost 13,8% this year and 12,5% for 2017.
Published in My Article
When it comes to the viewing of major sports events on television, broadcasters and sponsors may be facing an uphill battle to attract young Millennial viewers (those aged around 18-34), who are increasingly either not watching at all, or preferring social media- or Web-based viewing. This means traditional TV broadcasters and their high-spending sponsors and advertisers are finding it increasingly difficult to achieve the critical mass of viewers they require in order justify the high costs involved. Writing for the upcoming issue of the ‘IMM Journal of Strategic Marketing’ (due to be published in mid-October), regular columnist Professor Michael Goldman says figures released by US broadcaster NBC – which paid US$1,2-billion for Rio Olympics broadcast rights – show that its viewership declined by 16% (5,1-million people) versus the Olympic Games held in London in 2012. The biggest factor was the loss of Millennial viewers, who dropped by a massive 31%. This pushed the median age for Rio 2016 viewers to 52,4 years – up from age 49,5 years for London. Some of these ‘missing Millennials’ migrated to NBC’s Internet-based Rio coverage, which attracted 50-million viewers, a more than 100% increase on the London games. But many of the 18-34 age group were missing altogether. “These results confirmed a concern NBC had expressed previously – that Millennials would be in a social media ‘bubble’ and wouldn’t even know the Olympics was coming,” writes Goldman, a South African academic now lecturing in sport marketing at the University of San Francisco in the US. According to Goldman, this trend raises further questions about changing media technology and the way people now watch coverage of major sporting events.
Published in My Article
Tuesday, 17 February 2015 22:00

Mixed feeling about shorter TV commercials

The number of 15-second TV commercials being flighted has increased by 80% since 2008, according to international research. Multinationals such as Proctor & Gamble (P&G) are now embracing the shorter format on the grounds that these are “cheaper and more effective than the traditional 30-second spots”.

More recently, social media giant Facebook also introduced 15-seconders for advertisers wishing to use video to engage with users on its platform.

Published in My Article