April 28, 2016

I’ve been helping clients with media planning for years. The first question asked is always, “where should I spend my money?” The first question I ask is, “who is your customer?” All marketing begins and ends with understanding your customer. The more you know about your customer, the better return you will receive from your marketing investment.

That is why research is always the first step. For example, we just finished a customer study for a major electrical transformer manufacturer and I believe it will really help them spend their money more wisely. Part of your research should also be looking at broad trends in media spending.

That’s why I wanted to share a media usage projection from eMarketer (an online data source). The report states that it looks like ad spending is following consumer media consumption. That’s the key. When you follow ad money, you basically see how your customer is consuming media: where you should be to get attention.

US Media Ad Spending Share By Medium
  (% of Total Spend)
Medium 2014 2016 2018 2020
Digital 28.3% 35.8% 40.8% 44.9%
   Mobile 10.9 22.7 28.8 32.9
TV 39.1 36.8 34.8 32.9
Print 17.4 13.9 12.2 11.1
   Newspapers 9.1 7.2 6.1 5.5
   Magazines 8.3 6.8 6.1 5.6
Radio 8.4 6.1 6.7 6.1
Out-of-Home 4.0 3.4 3.7 3.4
Directories 2.8 1.7 1.9 1.6
Source: eMarketer, March 2016

The report clearly shows you should be spending more on digital (online), mobile and far less on directories (get rid of that yellow page ad budget). It also shows that traditional media is still valuable. The report reveals that TV ads influence far more consumers to make a purchase than video or display ads, though social media ads (primarily on mobile devices) are second to TV among Millennials.

Returning to the eMarketer forecast, some other points of note include:

  • Magazines overtaking newspapers in ad spending in 2019, primarily on the basis of a slower decline in ad spend;
  • Spending on non-mobile digital advertising overtaking print in 2019;
  • Out-of-home’s share of media advertising spending declining at a slower rate than most traditional media (save for TV), as a result of continued volume growth.

For additional information from Marketing Charts, please visit here; and, from eMarketer, visit here.

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