Skip to main content

Advertising Apocalypse: from Mad Men to Sad Men

The shift to digital marketing practices, and a move away from traditional advertising, has taken its toll on legacy media companies. In hindsight, the economic crisis hit the U.S. advertising market much harder than expected, with overall revenue dropping from $77 billion in 2008 to $67 billion in 2009.

New York Madison Avenue's traditional ad executive ranks have gone from upbeat Mad Men, to down-and-out Sad Men. The glory days are clearly over, as the industry transformation continues.

According to the latest market study by Yankee Group, contained in a report entitled "2009 Advertising Forecast Update: Less TV, More Internet," the lion's share of the decline was due to TV advertising, which plummeted from $52 billion in 2008 to just $41 billion in 2009.

"The 2008-2009 recession drove down the value of everything -- from home prices to TV advertising revenue," said Carl Howe, director at Yankee Group and author of the new report.

As consumers have become worried about the economy, they've reduced the amount of time they spend on media to less than 12 hours a day, down from nearly 14 hours in 2008. This shift in behavior has caused ad revenues to drop significantly.

Other findings from the Yankee Group study include:

- TV and video watching decreased a full hour per day. Consumers spend a total of 3 hours and 17 minutes watching TV, DVDs, videos and pre-recorded programs.

- TV's loss was the Internet's gain. While time spent online decreased by 40 minutes per day from 2008 to 2009, consumers still spend more time online -- 4 hours and 13 minutes daily -- than with any other medium. Internet advertising revenue increased from $24 billion in 2008 to nearly $26 billion in 2009.

- Mobile is the only category that gained time. Consumers spent 40 minutes per day talking on mobile phones in 2009, up 12 percent from 2008. Mobile Internet use grew 36 percent, to 11 minutes a day, and texting grew 55 percent, to 27 minutes a day.

Popular posts from this blog

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

Virtual Reality Market Set to Reach $100 Billion

Virtual Reality (VR) market growth is now finally coming to fruition. Thanks to current actions and market momentum, VR is approaching what can be considered critical mass. And, not a moment too soon. This growth momentum comes from new hardware and content releases, accelerating enterprise value recognition, and a significant metaverse wild card that could potentially lift adoption and usage. According to the latest worldwide market study by ABI Research, over 85 million VR Head Mounted Displays (HMDs) will be shipped in 2027 across consumer and enterprise segments, creating a $100 billion VR market that includes hardware, software, and services. Virtual Reality Market Development "Expectations have been high in VR for years, and even decades, without notable growth to show. That growth is finally coming over the next five years," said Eric Abbruzzese, research director at ABI Research . The barrier to entry is lower than ever, all while content performance and user experien

How Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment.  According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022. Future of Work Market Development "Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC . According to the IDC assessment, organizations must mak