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Television has been called many things, and in the past several years, one of those things is 'dead'. But when it comes to advertising, television is still alive and kicking, and according to a new survey from media management software vendor STRATA, it's television advertising, not digital advertising, that will benefit most from economic recovery.
Of the major advertising firms polled as part of STRATA's 4th Quarter Agency Survey, the greatest percentage (44%) said that their clients were focused most on television, a 24% rise over the previous quarter. Digital trailed significantly, with 21.1% reporting the internet to be their clients' medium of choice.
It has been a long time coming, but according to new stats, the internet has achieved a significant milestone this year: it surpassed newspapers to become the second largest ad medium.
Specifically, eMarketer predicts that by the time 2010 is finished, marketers will have spent just under $26bn on online ads, up nearly 14% year-over-year. At the same time, the research firm estimates that newspaper ad spend will have dropped over 8% year-over-year, to just under $23bn.
The economy may not be great, but the internet isn't complaining. In fact, the economy has likely helped internet advertising achieve a significant milestone in the UK. According to the Internet Advertising Bureau (IAB), internet ad spend surpassed television ad spend for the first time ever anywhere in the world.
Total spending on internet ads in the UK hit £1.75bn in the first two quarters of the year, a 4.6% year-over-year gain. That's good enough to account for almost 24% of all ad spending. Television, on the other hand, now accounts for just 21.9% of ad spend following a painful 16.1% year-over-year decline.
Since the floor has fallen out of print circulations at many newspapers, editors are paying greater attention to the layout of their web sites. What they're finding isn't pretty.
For years if a newspaper had a website, it most likely served as a digital dumping ground for the print product. Design and functionality wasn't a key concern because most readers still got their news in print. Times have changed, but unfortunately many newspapers remain unprepared.
The general consensus seems to be that the Great Recession will end sooner than later and, even if we've got some permanent scars, most of us in Internet Land will get back to business as usual.
But what if that's not the case? What if online publishers should be preparing for a protracted period of little to no growth in online ad spend?
Thanks to the 'Great Recession', few expected Q1 2009 to be a pretty quarter for ad spending in the world's most prolific advertising market, the United States.
Thanks to Nielsen (PDF), we now have some idea of the damage: a 12% year-over-decline. That amounts to a $3.8bn drop in the size of the total advertising pie.