Marketing Budgets Rise as Share of Company Revenues
Budgets have risen to 9.5% of total company revenue in 2022, according to the annual CMO Spend Survey by research firm Gartner, Inc.
Budgets have risen to 9.5% of total company revenue in 2022, according to the annual CMO Spend Survey by research firm Gartner, Inc.
Here are three perspectives: Ad spending numbers, reasons for ad spend increases and the long-term outlook for podcasts. Read more »
At our February Young Pros event, Meghan McGuirk, VP Group Director, Investments at Havas Media, Cristina Schlobohm, Director of Communications Strategy at Havas Media, and Kara Donahue, Account Executive at Roku, walked attendees through the media buying and selling process. They explained the five main media planning milestones: briefing, defining a strategy, tactical work, activating a campaign and reporting after it’s complete. Each speaker elaborated by using real life examples and showed the perspective and impact that all teams involved in the process have—both on the client or vendor side.
Member Only AccessAvoiding misinformation and supporting journalism is not just about brand safety or corporate responsibility. New findings, from an IPG Mediabrands client launch, show NewsGuard's data for responsible inclusion of news leads to major improvements in campaign performance metrics.
Source: NewsGuard. (2021, May). How Advertising On Credible News Increases Reach, Efficiency, And Performance. NewsGuard.
Member Only AccessA review of global advertising investment, media consumption and CPM inflation. WARC’s latest research from 100 markets worldwide shows that 2020 was the worst year on record for traditional advertising media, while the online market failed to record growth for the first time since the Dotcom crash. Ad spend, excluding political campaigning, is down by 11.0% to $552 billion this year. Key findings include:
IHS analyst Eleni Marouli predicts 2016 ad spending in this Media Post article by Laurie Sullivan. “Advertising to Surpass $500 Billion in 2016” includes the prediction that advertising will rise 5.7% and video will become the new mobile. Initiatives around measurement in the advertising industry are also discussed by Sullivan.
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Source: http://www.mediapost.com/publications/article/265493/advertising-to-surpass-500-billion-in-2016.html
Chuck Martin’s 2016 IoT predictions for Media Post include an extensive list from a variety of cited sources. Beacons, wearables, encryption technology, smart machines, and more are presented in, “2016 IoT Predictions: Big Data, Beacons, Wearables, Security.”
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Source: http://www.mediapost.com/publications/article/265353/2016-iot-predictions-big-data-beacons-wearables.html
Matt Sweeney, CEO of Xaxis North America, presents six of the top trends that will impact advertising in the year ahead. In this article for Campaign Live, “Better Creative, Fewer Ads: 6 Trends That Will Define 2016,” Sweeney predicts that ads will be more relevant and less intrusive.
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Source: http://www.campaignlive.com/article/better-creative-fewer-ads-6-trends-will-define-2016/1377923
The Internet Advertising Bureau (IAB) plans to seek additional clarification from the Federal Trade Commission (FTC) concerning the Commission’s recent Guidance on Native Advertising. Brad Weltman, Vice President, Public Policy at the IAB, discusses his concerns in this IAB press release, “IAB Concerned About FTC Guidance on Native Advertising.” While both organizations agree on the importance of clear disclosure to consumers, they disagree about other points in the Guidance.
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Source: http://www.iab.com/news/iab-concerned-about-ftc-guidance-on-native-advertising/
This December 2015 article from the Journal of Advertising Research examines how consumer behavior across multiple online advertising channels can be used to predict conversions. The authors, Sebastian Klapdor, McKinsey & Company, Munich; Eva Anderl, FELD M, Munich; Jan H. Schumann, Universitat Passau, Germany, and Florian Von Wangenheim, ETH, Zurich, Switzerland, suggest strategies for advertisers to target individual consumers based on this research in this article, “How to Use Multichannel Behavior To Predict Online Conversions-Behavior Patterns Across Online Channels Inform Strategies For Turning Users Into Paying Customers.”
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Source: http://www.thearf.org/journal-of-advertising-research-online-access/
Some form of advanced TV has been used in marketing efforts by 78% of advertisers, according to the survey, “Advanced TV: Ad Buyer Perceptions.” In addition, 72% of marketers and agency executives surveyed believe that advanced TV will become an important advertising platform within five years. According to a press release by the Interactive Advertising Bureau (IAB), this survey was recently published by the IAB and its Digital Video Center of Excellence. The current media budget allocation for advanced TV is $1.4 million; however, 70% of advertisers expect to increase their budget for this medium within the next 12 months. Funding is expected to come from both TV budgets (68% of respondents) and expanded or experimental ad budgets (54% of respondents). Addressable advertising, second screen ads, and interactive tags are among the advanced TV ad formats expected to increase in the next year. The strongest benefits of advanced TV include: -Better targeting capabilities. -Ability to reach consumers anytime on any device. -Improved ROI. -Ability to personalize or localize messages. Potential obstacles to the growth of advanced TV include: -Marketplace confusion about this medium. -Uncertainty about the differences between advanced TV and connected TV. -A lack of understanding about advanced TV’s technical process. -Concern about high costs. The IAB is establishing a committee on the subject of advanced TV in response to member interest. The press release includes a link to the complete findings of this report. See all 5 Cups articles.
According to the latest Advertising Expenditure Forecasts from ZenithOptimedia, in 2016 mobile internet advertising will become the world's third-largest advertising medium, behind television and desktop internet and ahead of newspapers. The media agency's forecasts show that next year mobile will account for 12.4% of global adspend while newspapers will take 11.9%. In terms of actual value, mobile advertising will grow 38% in 2016 to US$71bn, while newspaper advertising will shrink 4% to US$68bn. Mobile advertising is the driving force behind the growth of the entire advertising market, ZenithOptimedia stated, as it will contribute 83% of all new ad dollars between 2014 and 2017. And as mobile continues its inexorable rise, so print continues to decline across most of the world. ZenithOptimedia predicts that newspaper adspend will shrink by an average of 4.9% a year through to 2017, while magazine advertising will shrink by 3.2% a year. Their combined share of global adspend will fall from 19.6% this year to 16.7% by 2017. In that year, internet advertising is expected to account for 34% of global adspend, slightly behind television's 35.9% and is likely to gain the top spot in 2018 on current trends. Total adspend is forecast to grow 4% this year to reach US$554bn before accelerating to 5% in 2016, thanks to the four-yearly boost supplied by the summer Olympics and US presidential election. See all 5 Cups articles.
Out-of-Home (OOH) advertising revenue rose 3.8% in the second quarter of 2015 compared to the previous year, accounting for $2.25 billion, based on figures released by the Outdoor Advertising Association of America (OAAA). In contrast to the OOH advertising revenue growth, statistics from Kantar Media reveal that total ad spending in the United States was down almost 7% for the quarter, and OOH and local radio are the only traditional media with significant growth. In this Research Brief From the Center for Media Research, Jack Loechner provides a ranking of top OOH advertisers, based on their spending, as released by the OAAA. This ranking includes: -McDonald’s -Apple -Metro PCS -Warner Bros Pictures -Geico The article includes this quote by Stephen Freitas, OAAA Chief Marketing Officer, “…the most significant trend in advertising today is the shift to digital… this hasn’t impacted OOH the way it has other traditional media, because OOH complements… digital marketing… especially mobile… the fastest growing of all digital platforms… ” See all 5 Cups articles. For more on this topic, check out the Media Tab in Morning Coffee.
The Association of National Advertisers (ANA), in partnership with BrightLine, an ad platform, reports that more than 70% of 215 client-side senior marketers believe that connected TV represents an opportunity for the advertising industry. Despite this belief, none of these marketers spend more than 10% of their budget on connected TV.
YuYu Chen, summarizing this report for ClickZ, reports that 48% of respondents whose companies are currently engaged in connected TV or OTT devices plan to allocate more of their TV ad budget to it next year. In addition, another 13% of respondents not currently engaged in connected TV or OTT, plan to allocate some of their budget to it next year.
Top benefits of connected TV/OTT include: