Take a look at this article from eMarketer, Geoff Ramsey. Some great stuff here!
TV effectiveness is on the wane—ratings are down—yet costs continue to rise. Look at this 2006 data from McKinsey & Co:
- Over the past 10 years, ad spending on broadcast TV has risen 40
percent, while the number of viewers has dropped by almost 50 percent
- Upfront CPMs for TV broadcast spots increased 7.3 percent in 2004/2005 and 2.6 percent in the 2005/2006 season
- The cost of a Super Bowl ad has increased 14 percent between 2003 and 2006, yet the audience shrank.
Research from Forrester and the ANA predicts that by 2010 traditional TV advertising will be only one third as effective as it was in 1990!
Many recent surveys show that marketers across the board are spending more online:
- BtoB Magazine: 72 percent of marketing execs worldwide plan to increase their spending online in 2006
- ANA: 80 percent of advertisers say they will spend more of their budgets on web ads
- TNS Media Intelligence: 49 percent of CMOs at Fortune 500 firms plan to increase their online ad spending by 30 percent
What are dealers going to do 5 or 10 years from now? Will they still be placing ads in the newspaper and spending thousands on TV and radio ads?
(Thanks for the link Matt)