Marketing dollars shift in response to economy
2009 is here, along with new budgets that reflect both our weakened economy and a shift in marketing tactics. Technological advances and increased scrutiny of corporate spending have precipitated two significant shifts in marketing budgets.The first of these shifts that we're seeing is budgets for costly offline print and TV campaigns being redirected to online efforts. So, why the shift? As I mentioned earlier, corporate spending is increasingly being scrutinized and CEO's want to know that they're seeing returns on their investments. Traditional campaigns are expensive and the advent of services such as TiVo and DVR are driving up the already high cost of TV impressions. To make matters worse, tracking the results of offline campaigns is difficult, if not impossible. Online provides more affordable and measurable channels for marketing.
In addition to the online shift of marketing dollars, we're also seeing a dramatic change is how that money is spent online. Until recently, banner ads were the focus of many online marketing budgets. However poor click-through and dismal conversion rates have marketers looking for new avenues, specifically, online video and social media.
Posted by Jeremy Hilton on Feb. 06, 2009
Comments
I’m too much of a fan of various programs on TV and publications to ever hope that traditional ever goes away. The cherished rituals that you describe will hopefully keep it alive and well.
However, I will at any opportunity suggest that my clients shift their dollars to online. Of course, it is the industry that I’m in, so some could say that it’s self-serving. But, I truly believe that online is the smart play, especially when I can justify every dollar spent through analytics.
Posted by Jeremy Hilton on 02/17/2009 02:31 PM
Amen for Analytics. They definitely aren’t perfect (not everyone runs Java, etc), but they’re leaps and bounds above what can be measured using antiquated Nielsen methods for TV. Being able to measure exposure through to actual purchase is an absolute dream in comparison.
However, even though skipping ads gets easier and easier with use of DVRs, TV is still king for brute-force brand awareness and will likely be for some time. It’ll likely always have it’s place. People still read magazines. People will still get together to watch the Super Bowl, etc.
Posted by Art on 02/16/2009 10:49 AM