Skip to main content

A Left-Brain Approach to Marketing Planning

According to Forrester Research, marketers are losing faith in the power of TV, and as a result, they are pumping less advertising spending into the channel. In a joint survey with the Association of National Advertisers, Forrester found that more than three-fourths of national advertisers think that traditional television commercials have become less effective in the past two years.

Merrill Lynch analysts predict that upfront spending increased only 3 percent this year, compared with an estimated 8 percent increase last year. What's behind the TV advertising decline? Apparently, a combination of small shifts are creating significant downward pressure on the TV ad spend.

Changing TV ratings measurements -- DVRs are changing how 13 million American households watch television today, and they will reach another 52 million American households within the next five years. DVR users report skipping 92 percent of the ads in recorded programming. In this year's upfront (ad selling market), TV advertisers avoided having to pay networks for CPMs in recorded programs. But this may change in November when Nielsen begins delivering average commercial ratings for programs.

What it means for advertisers: Nielsen's new measurements will reduce the guesswork (and the risk) of upfront 2007, as well as making it easier to target ads by average commercial ratings among different demographic groups.

Changing media consumption patterns -- Consumers no longer focus their attention only on their TV while they sit on the couch -- they're also online, talking on the phone, or reading a newspaper. And multitasking behavior is on the rise, threatening to fragment consumer attention even more and making TV ads increasingly less effective. Consumers are also tending to spend more time on the Internet than watching TV. This is especially true of young consumers, which means that this trend will likely continue. Gen Yers (ages 18-26) spend 12.2 hours online per week and 10.6 hours watching TV, compared with Older Boomers (ages 51-61), who spend 6.6 hours online and 13.7 hours watching TV.

What it means for advertisers: Marketers will shift spending from TV to online ads and marketing technology platforms such as marketing automation and contact optimization. Standalone TV ads -- without a connection to the Internet or a word-of-mouth campaign -- will be proven less effective.

New alternatives for advertisers -- Advertisers in the know -- like the three-fourths of respondents who have taken notice of TV ads' decreasing effectiveness -- are turning to alternative and emerging ways of reaching consumers using the Internet and other connected channels like mobile. Word-of-mouth, blogging, and advergaming campaigns allow the customer to interact with the brand and can create trust and loyalty. Ads that invite consumers to participate create more lasting impressions than the passing 30-second spot.

What it means for advertisers: More marketers will tap new online channels that open lines of communication with their consumers -- as General Motors has done with its FastLane blog and Procter & Gamble has accomplished with its Vocalpoint social networking site. Forrester concludes that a left-brain approach to marketing planning can help you determine a marketing mix that will best suit your target audience by incorporating emerging interactive channels.

Popular posts from this blog

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year