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

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

Credit Scoring Service Spending will Reach $44B

Credit scoring is a method that lenders use to predict the probability a borrower or counter-party will default on loans, or incur additional charges for repayment -- also known as measuring credit worthiness. The method is a key tool in making credit affordable for individuals and businesses. It links credit products to risk potential, connecting borrowers to secondary capital markets and increasing the amount of funds available. This securing process establishes risk predictability dependent on a number of factors, determined by financial indicators and other publicly available information reported by the credit bureaus. Credit Score Market Development According to the latest worldwide market study by Juniper Research, they now forecast credit scoring services will grow by 67 percent to $44 billion by 2028. Juniper anticipates that emerging markets will experience the greatest growth -- projecting the African & Middle Eastern region to grow by 117 percent over the forecast period