While the ZenithOptimedia research doesn’t break out TV mass advertising vs. DRTV, it does show the traditional marketing channel in a new light. Critics, especially direct marketers, have been saying TV ads are on the way out — if not gone with the press of a fast-forward button on a TV remote. So, too, did they predict that cookie-lacking mobile devices would stall. However, both channels dominate ad spend in 2017, shows research released on Monday.
That same year, Internet marketing will overtake TV ad spend, according to “Advertising Expenditure Forecasts June 2016” (Opens as a PDF) released by London-based ZenithOptimedia, “the ROI agency.”
ZenithOptimedia says direct marketers were partly right. Direct response is taking over ad spend, but the company contends that it needn’t be to the exclusion of brand awareness efforts, like mass-market TV ads.
“One of the reasons for television’s loss of share is the rapid growth of paid search,” reads the reports executive summary that shows paid search growing from nearly $71 billion in 2015 to more than $102 billion worldwide in 2018, “which is essentially a direct response channel (together with classified), while television is the preeminent brand awareness channel. Television does not compete directly against search, and indeed the two can complement each other. For example, by running paid search activity to take advantage of the increase in searches driven by a television campaign.”
People around the globe are still watching TV, even if they are on their mobile devices, as well, shows a study released on June 13 by ZenithOptimedia. (Opens as a PDF) “Media Consumption Forecasts 2016” says TV is “by far” the most popular “consumption” channel. In 2015, consumers watched 177 minutes of TV and spent 110 minutes on the Internet each day.
“Mobile technology is transforming the way people around the world consume media, and is expanding overall media consumption,” says Jonathan Barnard, Zenith’s head of forecasting, about the “Advertising Expenditure Forecasts” research. “It provides traditional media owners the opportunity to reach people and places they’ve never had access to previously, and gives consumers entirely new ways to find and enjoy compelling content.”
So maybe TV and mobile can share the crown.
What do you think, marketers? Do you agree with Zenith? (Opens as a PDF)
Please respond in the comments section below.