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.
ad spend
All About Podcasts
Here are three perspectives: Ad spending numbers, reasons for ad spend increases and the long-term outlook for podcasts. Read more »
- Past Event Highlights
- Article
Media 101 — A Guide to Buying and Selling (Event Summary)
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 AccessNYCU: Advertising on Credible News Works
Avoiding 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.
- Until now, digital advertisers concerned about ad placements on unreliable news stories have been stuck between two bad choices: Either risk ad placements on misinformation sources or block credible news with overly broad, keyword-based solutions. As COVID-19 misinformation began to spread in 2020, the problem became more acute and urgent for advertisers.
- NewsGuard partnered with IPG Mediabrands and a top programmatic advertiser, to test a new solution to the problem: Using NewsGuard's journalist-curated news source credibility ratings dataset to expand the brand's "Allow List," including previously excluded news sources with high NewsGuard trust scores based on nine journalistic criteria. Based on NewsGuard's data, the brand removed numerous, unreliable sites from the "Allow List" and added thousands of new, highly trusted local and national news sources.
- The solution led to substantial improvements in key performance indicators for the brand's campaign: Expanded reach, lower CPMs, increased efficiency of ad spend and higher click-through rates. In the process, IPG Mediabrands and the brand fulfilled their goal of supporting legitimate journalism.
- The highly trustworthy news sources that were added performed better, on average, than the typical site on the allow list. Effective CPMs were nine percent lower for the NewsGuard-approved news sites, while CTR were 143% higher.
- The test demonstrates the potential benefit to brands of advertising on trustworthy news sites—improving campaign performance, while removing brand-safety risks associated with misinformation and disinformation sources.
- The bottom line: Avoid misinformation and achieve greater efficiency.
Source: NewsGuard. (2021, May). How Advertising On Credible News Increases Reach, Efficiency, And Performance. NewsGuard.
Member Only AccessNYCU: Global Ad Trends: 2020/21
A 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:
- Media owners saw revenues fall by a combined $63bn in 2020.
- Ad market decline this year is double that of the Great Recession after accounting for inflation.
- Ad investment is forecast to rise by 6.7% next year - meaning only 59% of this year’s losses will be recouped.
- The majority of ad money will be transacted by machines for the first time in 2021.
- Online video is the only format to have its 2020 growth estimate upgraded, and it will lead growth in 2021.
- All product categories are set to increase spend next year, though only three will top their 2019 total.
2016 Predictions and Trends
For the First Time, Advertising To Surpass $500 Billion In 2016
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
IoT Will Become Omnipresent in Our Lives
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
Fewer but More Creative Ads in 2016
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
Native Advertising: FTC Guidance and IAB Concerns
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/
Multichannel Online Behavior Can Predict Online Consumer Purchasing
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/
Nearly 8 in 10 Advertisers Now Use Advanced TV and Most Plan to Increase Spend in the Next 12 Months, According to IAB Research
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.
Mobile to Overtake Newspapers
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.
Traditional Out-of-Home Media Continues Growth
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.
Connected TV Spend to Rise, While Priority Remains Low
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:
- Audience targeting
- High engagement
- Amplification of video content
- Lack of reliable measurement metrics
- Small-scale audiences
- Cost/pricing
- Creative concerns
- Budgets
- Not familiar enough (especially reported by respondents not currently engaged with connected TV/OTT)