A little weekend reading: This month's MoneyMorning (compliments to them) did a piece on IPTV and the growth of internet advertising. A particularly revevant part is for a company being able to tell within hours how successful (or not) their advert has been as opposed to what has been 'traditional' media up to now. With the tools that WFM are about to roll out enabling their clients to create their own adverts it'll be easy to tweak everything quickly to come up with their own formula that works for them. I've been subjective in only pasting the 2nd half of the article so please read it all (good graph too..)
Good weekend all posters and viewers who sit on the sideline here :-) Cheers
There are two big reasons for the shift. First, the Internet is still a growing medium. That’s thanks to the advent of social networking websites, but future growth will also come from Internet TV (IPTV).
The Shift Away from Traditional Advertising
The second reason is that online advertising can be tracked, monitored and reported on much more effectively than TV, radio or newspaper advertising.
Advertisers can set up and adjust an online advertising campaign in seconds — Google and Facebook are two of the more popular online advertising markets. This means a company knows exactly how many people have seen their ad, how many of those clicked on the ad, and how many of those actually bought something.
A marketing manager can tell within hours whether a campaign has worked or not. That’s not the same for TV, radio or newspaper advertising. The outcome is much less clear. The ratings and circulation numbers only tell you how many people were tuned in to the TV or radio, and how many bought the paper.
But it doesn’t tell you who actually saw or read the ad. And you can’t be certain whether someone bought the product because of the TV ad at 6:07pm, the radio ad at 8:14pm, or the newspaper ad from the day before (or which newspaper ad in which paper).
In other words, the old style of advertising is immeasurable, whereas Internet advertising is measured down to the individual buyer. And if PwC is right, the new advertising medium is about to take another leap.
As the Australian Financial Review pointed out, ‘PwC predicts mobile advertising spending will achieve compound annual growth rate of 46 per cent over the next four years, to reach $90 million by 2016.’
That’s still only a fraction of the free-to-air advertising market, which stands at $3.3 billion per year. But it’s fast catching up with magazine advertising, which this year fell 8.5% to $571 million.
Given a choice between a high-risk but growing sector and a high-risk but declining sector, we know which we’d rather bet on…Internet all the way.
WFM Price at posting:
3.6¢ Sentiment: Hold Disclosure: Held
