New Advertising and Media Forecasts predict that within five years online advertising will surpass the television industry as the largest and most popular advertising medium.
As the six major TV networks align their fall programming lineups and begin making their upfront sales pitches, the reception from large agencies has been frigid.
Insiders report that Internet is making a stronger impact and influence with buyers who plan on shifting more budget into online mediums away from Television, radio, print, billboards, and direct mail. Advertising allocations are being shifted to the Internet as marketers are requiring more immediate and personal contact with their target market. The web is becoming a more attractive advertising delivery system.
Internet advertising is projected to grow to 20% of all ad spending by 2010 as more marketing money is moving to the Web. Network TV advertising is considered less powerful as cable fragmentation, high-def programming, TiVo and media on demand vehicles are eroding television's viewing audience.
In short, TV is not being watched by as many consumers as in years past.
The couch potato is quickly being replaced by the web surfer.
The major search engines led by Google are launching Really Simple Syndication (RSS) feed vehicles that allow advertisers to display ads in appropriate content and feed vehicles, this is eliminating waste and increasing impact as advertising messages can be more aligned and targeted with in-market media programming.
Web advertising is the most relevant advertising medium.
Organic/Natural Search Engine Optimization the most effective and powerful foundational element within successful web advertising efforts.
Key Organic Search Engine Optimization Facts:
- Keyword search is the 2nd most popular online activity, rapidly approaching the popularity of email retrieval.
90% of all new website visitors are delivered by a major search engine and/or directory.- 98% of all keyword search activity results are powered by the big 4 search engines: Google, Yahoo, MSN and AOL.
- Keyword search results on Google, Yahoo, MSN and AOL are all determined by a search engine spider and/or robot crawler.
- Recent internet marketing studies confirm that keyword searchers prefer the organic results at a 6 to 1 ratio vs. pay-per-click sponsored search advertising listings.
Also online advertising medium continues to evolve and grow. The next logical extension for online advertising is growth for advertisers within the blogging industry as blogs allow advertisers to tie their advertising messages into topic-centric blogs that are more content relevant than the often; bland, dated, and waste-filled programming and content of: TV, print, radio, etc.
Advertisiers also realize that media consumption is changing daily and broadcast mediums are not as popular or as effective in reaching huge pockets of consumers as they once were and the costs associated (cost per ratings point) have increased dramatically in recent years. These same television campaigns that are losing impact and reach with consumers are now more expensive as TV rates continue to rise.
Editor's Aside:
It is especially painful to watch the domestic automakers continue to pour millions into TV advertising campaigns as they lose billions per quarter. Here in Metro Detroit as thousands of our colleagues, relatives, neighbors, and friends lose their auto jobs, retirement benefits, pensions, healthcare coverage or all of the above, its becomes quite the bitter pill too swallow when the big three automakers continue to pour hundreds of millions of fresh dollars into redundant television advertising campaigns that are not driving product sales.
Can the executive teams at the big three ever seriously adjust to advertising market conditions? Do they truly understand that television viewing levels and newspaper readership levels are declining? Television is not having the impact it once did with prospective car and truck buyers. The vehicle buying public is no longer watching or responding to the redundant television advertising campaigns executed by the big three.
Once again the car makers are actively negotiating their upfront television buys seeking to pour billions more into the televsioins medium throughout this decade. Quite ironic to consider that the same executive decision making teams that have handed sales market share to foreign automakers and responsible for their corporate turnaround plans are the very same groups signing off on TV heavy ad campaigns.
The latest reports show that the automotive manufacturers continue to lead the charge into TV spending the most on the television medium. This is simply another indication that the executive teams at the big three are stuck in the past. The domestic automakers need to reeducate and adjust their marketing efforts rapidly and embrace the new global paradigm sooner rather than later.
