Tue, August 08, 2006
It's hard to find any good news in advertising today if you ask me. Sure, it's getting easier to segment your market. Here's some bad news for TV advertising. According to McKinsey consulting, by 2010, traditional TV advertising will be one-third as effective as it was in 1990. When you consider a 23% decline in ads viewed due to switching off; a 9% loss of attention to ads due to increased multitasking and a 37% decrease in message impact due to saturation, it's clear that the television advertising space is in for some changes.
According to this story, which I found very interesting, "real ad spending on prime-time broadcast TV has increased over last decade by about 40% even as viewers have dropped almost 50%. Paying more for less translates into a much higher cost-per-viewer-reached -- a trend also true in radio and print."
While the Internet advertising space may be cheering, I personally think the effectiveness of online advertising is currently undergoing a decline in effectiveness as well. The only thing protecting it is that for your dollar, you could argue it still provides one of the strongest return-on-investment. How long will that last? We will have to see.
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