B2B Beat: Who’s Winning as TV, Computer, and Mobile Battle for Ad Dollars?
August 2, 2015
Internet and mobile devices are looking like big winners in this clash, as they continue to grow at double-digit rates and are even grabbing dollars away from television – an estimated $1.5 billion in the most recent TV season, according to data from Standard Media Index.
But in the end, marketers – B2B marketers in particular – may be the biggest winners in this fight. That’s because the combination of increased targeting capabilities and TV-style advertising available on each of the screens will enable efficient, personalized messaging with a broadcast look and feel.
Digital Is Growing at TV’s Expense
SMI, which is an organization that tracks advertising agency media spending in the United States, analyzed the most recent broadcast season, which ran from October 2014 to June. In that period, digital ad spending increased 16 percent compared to the same time-frame a year earlier and grew $3 billion to about $18.75 billion.
SMI found that the entire advertising ecosystem in the United States grew by only about $1 billion, which represents digital ad spending’s organic growth. That means that the other $2 billion of the digital ad market’s growth was siphoned away from traditional media.
Broadcast and cable TV lost about $1.1 billion to digital advertising, according to SMI calculations. Local and syndicated TV surrendered another $400 million to digital, which means that TV as a whole fumbled away $1.5 billion to digital outlets. Print ($350 million) and radio ($150 million) lost a combined $500 million.
SMI isn't the only organization seeing this trend of digital advertising cutting into traditional media. Carol Greenhut of advertising research firm Schonfeld & Associates told Advertising Age, “We're seeing a little more growth every year, and we are returning to spending levels seen before the recession. The industry is shifting from traditional media to Internet spending. There's a lot of spending going on, but not in the same places.”
Digital Media, with Mobile as a Key Driver, to Surpass TV by 2017
Digital advertising’s growth is not over. In fact, now digital is poised to take a dominant position in the advertising world. Magna Global predicts that digital ad spending will overtake U.S. TV ad spending in 2017, when digital media will reach $72 billion in annual spending and control a market share of 38%.
Mobile will drive much of digital media’s growth. Between 2014 and 2017, desktop ($13.6 billion) and mobile advertising ($48.2 billion) will grow by a combined $61.8 billion, according to ZenithOptimedia. In the same time-frame, television will grow by just $13.9 billion.
Digital media is growing for many reasons. It’s where the eyeballs are, for one thing. It’s often less expensive and generally more measurable than traditional media.
Ironically, digital media is also growing more attractive for another reason: It increasingly resembles the king of traditional media: Television. Like TV, digital media now has enough broadband to provide all kinds of advertisers – including B2B marketers -- a venue for video marketing messages, which can range from TV-style commercials to viral videos to long-form documentaries.
And best of all, these videos increasingly can be directed to extremely targeted audiences -- whether that audience is watching a TV, computer or mobile screen.
B2B Move of the Week
Toshiba America Medical Systems has appointed Satrajit Misra as its Vice President of Marketing. Misra was most recently senior director of the CT Business Unit at Toshiba. Previously, Misra held marketing roles at Philips and Siemens.
B2B Resource of the Week
Digital media is increasingly becoming a crucial part of lead nurturing programs. To find out more about lead nurturing beyond email, download The Sophisticated Marketer’s Crash Course in Lead Nurturing.