Brands, budgets and the bottom-line
I’ve been mainly spending this week finalising all our budgets and forecasts for 2008 and working with our clients on finalising theirs. As you may have seen from my editorial in this week’s Marketing Week’s social media supplement, I’m still amazed that brands are not adjusting their marketing spend to keep pace with new patterns of customer consumption
A recent marketing report suggests that only by 2010 will online marketing spend overtake magazine marketing. This will make it the third largest advertising medium in the world. This still suggests advertisers are planning to put the bulk of their budgets offline in the next couple of years.
And this flies in the face of all the evidence about shifting media habits, particularly the shift from TV to online. On average, 16-24 year olds watch television for an hour less per day than the ‘average’ TV viewer. Instead, online takes a central role in their lives; more than 70% of 16-24 year olds use social networking websites (compared to 41% of all UK internet users) and 37% of 18-24 year olds have contributed to a blog or message board (compared to 14% of all UK internet users).
Those are just the stats for the younger demographic but a quick straw poll in the office suggests that 24-35 year olds are also watching a lot less TV than they did even 12 months ago. And spending a lot more time online – with the dramatic rise of social networking sites being the rocket fuel for this shift.
Then there is print consumption. I notice every day that I’m the only person in the Tamar office (apart from, I think, Neil Jackson) who regularly reads a daily newspaper and remains brand loyal. The younger members of the team get their news online and via RSS feeds and never buy or read a daily paper.
And yet advertisers still carve up their budgets based on ‘traditional’ media and online has to fight for every penny! It’s at this time of year I start tearing my hair out about this all over again….