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Aug
7
Who Needs Traditional Advertising?
Filed Under Advertising, Digital Signage, metrics
Who Needs Traditional Advertising?
Well…everyone. But a study by Veronis Suhler Stevenson Communications, a private equity firm that invests capital funds in the media says that Alternative Media is becoming “Not So Alternative”. Some of the “newer” mediums, including Digital Out of Home (a.k.a Digital Signage) are powering advertising shifts very quickly out of the “old” traditional and into the “new” traditional.
This report comes out at the same time as another study by the same company is predicting that Online Media spend alone will be the US’s largest ad spend category jumping to $61.98 Billion by 2011. This is almost DOUBLE the forecast that I reported on earlier of $35 Billion.
One of the quotes that I liked in explaining this change was:
Consumers are also migrating away from ad-supported media and spending more time with media they support
In the first report, the main conclusion was that:
Advertising dollars are migrating at an accelerated pace to media that offer stronger return-on-investment metrics and are not impacted by ad-skipping technology.
Some findings that impact the Digital Signage industry that are relevant:
- Alternative advertising–including pure-play online and mobile advertising, Web sites of traditional media, satellite radio, in-video game advertising, and alternative out-of-home media–soared 36.6% in ‘06, to $26.53 billion.
- Spending on advertising is expected to grow 4.2% in ‘07, to $218.45 billion, driven by the alternative media segments.
- Alternative advertising’s market share will rise to 27.7% by ‘11
- If pure-play online advertising were combined with advertising on traditional media online platforms, overall Internet advertising would surpass newspapers as the largest advertising medium by ‘11–reaching $61.98 billion, and posting a 21.2% CAGR during the 2006-2011 period.
Ultimately, the more “alternative advertising/media” finds a place in the hearts of the Brands and Media Agencies, the more acceptable it will be to spend on Digital Signage - if you can show some form of ROI metrics.
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