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Ad researcher Kelsey Group, forecasts worldwide annual ad spending by automakers and their ancillaries will hold steady at $40 billion (€27.71bn; £19.80bn) through 2011.
Much of that moolah, says Kelsey, will be devoted to digital and out-of-home media - although in 2008 across-the-board spend will remain flat at best.
By 2011, however, online's share of global auto adspend will grow to 13%, up from 5% in 2007.
Kelsey's prediction reflects the current digital media spend trend, as reported by TNS Media Intelligence. Automakers and their local dealers have increased internet spending fourfold since 2002 - from $175m to $739m, says TNS.
Moreover, the digital spend predictions exclude search ads which are likely to account for many millions more.
According to Brent Dewar, General Motors' vp-field sales, service and parts for North America, he is trying to persuade dealer groups "to shift their focus to digital versus spot TV."
Data sourced from AdAge.com; additional content by WARC staff, 18 December 2007 Submitted by aki - 2007-12-18 06:34:36
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Following a global survey of more than 2,400 consumers spiced with feedback from eighty senior advertising executives, IBM has published a new industry study apocalyptically titled The End of Advertising as We Know It.
Led by Dr Saul J Berman of IBM Global Business Services, the study predicts that over the next five years some thirty percent of global ad revenues currently accruing to traditional media companies - amounting to billions of dollars - will migrate to online ad exchanges such as Google and Yahoo.
That's the verdict of more than half the executives polled. Moreover two-thirds of them expect 20% of today's ad revenue to shift from media channels with rates based on numbers of impressions to those tied to actions, such as click-throughs on web ads.
The next five years will see more changes in the advertising business than in the past fifty, prophesies the report. "As the advertising value chain reconfigures, broadcasters, advertising agencies and media distributors in particular will need to make a number of 'no regret' moves." Full reprt @ http://t1d.www-03.cacheibm.com/i...
Submitted by aki - 2007-11-12 06:11:27
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ore Americans are turning to Web TV viewing for personal convenience and to avoid commercials, according to a joint report by The Conference Board and TNS. "If advertisers can effectively leverage the online video platform, we should see much more interactivity and emotional connections between brands and the online TV-viewing audience," TNS executive Shari Morwood said. Submitted by aki - 2007-10-16 14:57:18
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Nike continues to reduce its marketing allocation for traditional ads, earmarking 33% of its $678 million U.S. ad spend last year for TV and major media, vs. 55% a decade ago; the athletic shoemaker instead is placing a greater emphasis on building its presence on the Net and in-person events. "We're not in the business of keeping the media companies alive," Trevor Edwards, Nike's corporate VP for global brand and category management, said. "We're in the business of connecting with consumers. Submitted by aki - 2007-10-15 12:14:12
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Foster's beer has decided to stop advertising on television in the U.S. and spend its entire American ad budget on Internet ads instead.
Its new online campaign begins Aug. 16 with ads on Heavy.com, a music-and-video Web site targeted at young men. The site's slogan: "Because TV sucks." Foster's ad agency, WPP Group's Ogilvy & Mather, will also produce and post on various Web sites a series of comedic videos aimed at promoting Foster's. Submitted by aki - 2007-10-11 16:21:48
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Miller and A-B Move More Money to Unmeasured Media like onsite, events, local media, and content placement. Submitted by aki - 2007-09-24 08:54:50
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Andy Berndt, co-president of Ogilvy & Mather's New York office, has left his post at the agency to go to Google, where he will helm a new global unit dedicated to collaborating with marketers, agencies and entertainment companies.
According to several ad-industry executives familiar with Mr. Berndt's future plans, the new unit will be a lab for innovation.
There has been much speculation over the past year whether Google would try to get into the agency business. The new global unit isn't being called an agency, but any unit offering creative consultation and account services could be considered one. Interestingly, Google had been trying to lure more creative talent to the company over the past year, according to ad industry executives familiar with the search giant.
Microsoft, meanwhile, recently bought its way into the agency business with its $6 billion purchase of aQuantive, parent company to agency Avenue A/Razorfish. When asked whether it would shed the agency after the purchase, Microsoft was adamant that it liked the business. Submitted by aki - 2007-09-18 09:38:40
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American companies are shifting more and more marketing dollars out of paid media. You see it happening every day as marketers—smart ones, at least—talk about things such as word-of-mouth and conversational marketing, the kind of activity that doesn't feed the coffers of media sellers or traditional ad agencies and hence goes unmeasured in bellwethers such as TNS reports.
Network and spot TV and national newspapers were hit hard—especially compared with the internet's 17.7% growth (not counting keyword search or video advertising, which TNS doesn't measure).
Expect that internet growth to continue, even in a recession.
Submitted by aki - 2007-09-17 08:04:11
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A new IBM study of consumer behavior in the digital age reveals that the time people spend in front of the computer is rivaling the amount of time spent with the TV, which means business strategies of studios and advertisers must evolve. The survey also revealed that people were looking for more traditional content to become available on their mobile devices. Submitted by aki - 2007-08-22 10:22:19
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Forrester Research study suggests that most marketers still use traditional tactics like run-of-site advertising and static microsites to push messages into these networks.
However, the return on investment in these campaigns is very low, and marketers should be prepared to engage in a personal relationship with users by providing something of value. "It is clear that successful social networking site campaigns do not follow traditional marketing rules," said Charlene Li, a principal analyst at Forrester and co-author of the report. Submitted by aki - 2007-08-21 13:54:10
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Boasting the claim to "let your toilet become interactive", The Piss Screen is a pressure-sensitive inlay set within urinals, enabling users to play while they pee. No not that kinda play, videogame play, pervert. Submitted by aki - 2007-08-09 07:39:41
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4
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Pessimistic Outlook Offered by Universal McCann and PricewaterhouseCoopers.
Three new ad-spending forecasts out this week -- and even a report intended to gauge how consumers view various media -- paint yet another discouraging picture for traditional media.
Universal McCann's senior VP-director of forecasting, veteran Robert Coen, has dialed down his prediction for U.S. advertising growth this year from an already low 4.8% to 3.1% growth over last year.
The actual dollar amount of advertising growth will dip even further, to $290.3 billion from $298.8 billion, because the original forecast was based on a 2006 projected gain that did not materialize. Ad spending grew only 3.9% last year instead of 5.2%, despite bumps from elections and the Olympics.
"I can't deny it anymore," Mr. Coen said. "Things are pretty bad."
Submitted by aki - 2007-06-28 07:09:58
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The current cost-based compensation model for advertising agencies is flawed for a simple reason: It misaligns the economic incentives on each side. The client pays whether the agency adds value or not, and the agency is paid a fixed amount regardless of the value it creates. Clearly, this model is not in the best interests of the client or the agency.
Even more perniciously, the existing compensation model focuses entirely on the wrong things: efforts, activities and costs. It does this at the expense of the right things: output, results and value. Submitted by aki - 2007-06-13 06:20:32
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Revenue for U.S. marketing-communications agencies jumped 8.8% to $28.2 billion in 2006, the strongest growth since ad spending began to rebound from recession in 2002.
The hot growth came from marketing services, fueled by digital. Traditional ad agencies, grappling with a shift from old media, saw tepid growth.
In 2006, U.S. agencies collectively generated less than half of their revenue -- 46.4% -- from traditional advertising and media planning/buying, with the rest coming from a range of marketing services including digital/interactive, direct marketing, sales promotion, health care and PR. Marketing services grabbed 53.6% of U.S. marketing-communications agency revenue. That was up from 51.5% in 2005, the first year that marketing services topped advertising/media.
What's behind the change? No surprise: the internet. U.S. interactive-agency revenue rocketed 23.1%, driving the increase in marketing services. But digital is more than interactive shops; it's an integral part of marketing services from direct to promotion. "Interactive is huge," says Chris Weil, chairman-CEO of Momentum Worldwide, a promotions agency owned by Interpublic Group of Cos. "If anybody in marketing is not a big part of interactive, they won't be around much longer."
Traditional advertising under pressure. The 4.2% U.S. revenue growth for traditional advertising/media agencies roughly tracks with ad spending: U.S. measured spending on traditional media last year grew a soft 3.2%, according to TNS Media Intelligence data. Submitted by aki - 2007-04-30 06:48:40
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On crisis to adapt to digital landscape. Additional Video Presentation here: http://adage.com/video/Player?sp... ;amp;amp;instanceId=&startId=&PageDate=&PageTitle= Submitted by aki - 2007-04-09 15:25:43
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