Friday, February 6, 2009

Ad Decline, Rise of Smartphones....

Click the link below to read the full article. As we think about where money will be spent on advertising, new media are always part of the discussion. Advertising professionals still see ad dollars shifting away from traditional media platforms...the figure they cite is about 1/4 of the ad budget migrating to non-traditional media from traditional platforms.

As you look for articles to blog about, find articles that offer an explanation of future ad spending or explanations of developing advertising platforms. The growth of mobile connectivity--smart phones--that will allow consumers to cut the cord from the television set will further change media use pattern, assuming a tight economy doesn't change demand.

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=99827


Story
Ad Decline, Rise Of Smartphones Seen As Biggest Trends
Mark Walsh, Feb 06, 2009 07:00 AM
mobile phonesThe pullback of ad spending and mobile phones becoming personal computers are the most "disruptive" force in media today, according to a new survey of media and advertising professionals by consulting giant KPMG.

Of the 200 executives polled by KPMG in connection with the AlwaysOn OnMedia NYC conference this week, nearly half cited the ad downturn as the industry's major trend, while 40% noted the growing use of cell phones for more than just talking. A close third was the thinning of "old media" through bankruptcies and closures (38%).

Survey participants were asked to choose from among six trends that also included Internet penetration opening up global markets (25%); the failure of social networks to monetize as expected (18%); and smartphones' potential for location-targeted content, advertising and marketing (17%).

The economic downturn also appears to have cooled enthusiasm for shifting ad dollars into digital media. While three-quarters expect more than a quarter of ad budgets moving away from traditional outlets in the next five years, that 75% is down from 90% a year ago.

1 comment:

Aaron Friedman said...

I think that KPMG's survey of media and advertising professionals was very interesting in terms of the context that KPMG used. The lead of the article is based on the answer of the biggest trend in the industry. In describing the biggest trend of the industry, KPMG used the term "disruptive force" to describe the biggest current trend in advertising. I believe that when readers see the term disruptive, there is automatically connotation of negativity. The biggest trend, the decline of advertising spending due to the recession, certainly warrants negative thought. However, other "forces" are a result of changing technology, such as the smartphone. Because the technology is so new, advertising executives are still working out effective advertising for new media platforms, which is why search engines remain the most effective platform for advertising. It will be interesting to see how long it takes for advertising executives to develop successful campaigns for new media, such as the smart phone, and how long it will take for the new media to become the easiest and most efficient advertising platform to broadcast.