Print, Radio and TV Continue to Be Big Casualties as Marketers, Agencies Shift Spending to New Frontiers
November 11, 2009 – Toronto, ON – The change in media spending patterns among Canada’s marketing and advertising industries continues according to a new Ipsos Reid poll released today. In fact, when asked to assess the pace of change in the media mix over the past two years, 92% of respondent Marketers (36% a lot/56% a little) and 88% of respondent Agency leaders (36% a lot/52% a little) indicate that virtually nothing has gone untouched.
The study shows that increases in Mobile, E-mail and Online at the expense of traditional media such as print, radio and TV are partly due to the impact of the recession which has created new spending patterns using scarcer media dollars, a belief that customer relationships can be built online, continued interest from senior management (marketers) and the rapid concurrent development and proliferation of digital technologies.
So, who are the losers in the battle over digital dollars?
In fact, assuming that their total marketing budget remains basically the same for 2010, responses from marketing and agency directors alike suggest that adjustments in �spend� across different media will result in the continued downward trend for print, radio and television, with stagnant growth on out of Home Digital and direct mail categories:
nd it would appear that ad revenue losses experienced by television networks may not rebound even after confidence and spending returns to consumers. Since 2007 an increasing proportion of marketers have indicated that their spend on television will decrease over the next two years; this has moved from 27% of marketers in 2007 to 42% this year –up a whopping 15 points in just three � this is clearly a function of much more than an economic recession:
And the winners are�
At the other end of the scale, the study suggests that online media, e-mail and mobile media will benefit the most as dollars are shifted into their categories:
The survey of agency and marketing professionals, which has tracked opinions as far back as 2006, shows that digital marketing continues to gain momentum with growth in usage of E-mail, Search, Social Network Marketing and Social Marketing.
What are the main drivers of this change?
Many observers of the shift in media dollars to digital might be quick to assume that the recession is driving this change. While there is some truth to this (38% of marketers agree that this is the case), the survey results suggest that assumption would be too simplistic.
Industry leaders were asked to indicate what they thought were the three main “drivers” of these changes over the past two years, and while there may be a slightly different emphasis by marketers versus agencies, the total and more complex picture as to what is driving change is clearly evident:
And underlying all of this is a strengthening recognition that strong customer relationships can be created on the Internet: attested to by 60% of respondent marketing and advertising in 2008; in 2009, view t has risen to 64%.
But, a proof is a proof is a proof�
While many (56%) continue to believe that that their senior management is interested in digital marketing, they also recognize that senior management is taking a good hard look for the proof in the pudding: asked what would be needed to change in order for them to spend more of their budget on digital media, respondents answered with proof that it works (24%), measurement tools (24%), better understanding (20%), and more resources (12%).
So, who are the Leaders in the Digital Marketing World?
Asked who they would identify as leaders in the digital marketing world, the list has expanded well �beyond the tech world� to include CPG and retail categories:
Apple (21%), Google (10%), Nike (10%), Amazon (9%), Dell (8%), Coca Cola (7%), TELUS (6%), Rogers (6%), Starbucks (6%), Facebook (5%), Dove (4%), e-bay (4%), Best Buy (3%), Microsoft (3%), Chapters/Indigo/Coles (3%), P&G (2%), Aeroplan (2%), Pepsi (2%) and ING (2%).
About Ipsos Reid
Ipsos Reid is Canada’s market intelligence leader, the country’s leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid’s marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.
To learn more, please visit www.ipsos.ca.
Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.
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