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Not Your Father’s Media Mix: 4 Charts for Advertisers Embracing Digital

Written by: Mike Lamy, Director, Corporate Marketing

Father’s Day is just around the corner. As with any commercialized holiday, advertisers are now battling to win the hearts and dollars (to the tune of $12.7 billion) of everyone shopping for a special gift for dad. Any time competition for customers heats up, it’s worth taking a step back and assessing how the business of advertising has changed, and where all the competition is taking place. An annual tradition like Father’s Day is a great time to mark how untraditional advertising has become.

For marketers looking to stay relevant and get the highest return on their ad spend (i.e. all marketers), we’ve assembled four charts to give you a quick reality check on how the media landscape has changed these past few years.

1. Consumer attention has shifted

In order to reach current and potential customers, advertisers know to follow the crowd; where consumers are spending their time is where marketers should be spending their time. And now more than ever, that time is being spent with digital media on a rapidly evolving array of connected devices.

In 2015 US adults spend an average of 5 hours and 38 minutes engaged with digital media every day, according to eMarketer. That share of time far outpaces any other form of media — and in fact, digital is the only media form with a positive CAGR from 2011-2015. As people turn off the TV and leave behind their magazines, advertisers must adapt to an all digital (and increasingly mobile) world.

2. Advertising budgets are evolving

As consumer attention shifts more to digital media, ad spend is following suit. ZenithOptimedia projects that between now and 2017, digital (desktop and mobile combined) will constitute 76% of all new ad spend growth worldwide. It’s clear from the chart below that within digital, mobile dominates at 51% of total growth as it continues to redefine marketing.

Just as the eMarketer chart above portrays print as the big loser in terms of daily time spent, ad spend projections don’t bode well for magazines and newspapers either.

3. Digital video goes mainstream

Video is quickly expanding to account for a larger portion of the advertising media mix for marketers looking to tell a story and inspire action. From spurring online sales to driving mobile app downloads, video ads are increasingly enabling marketers to achieve strong return on investment.

Our own Nanigans data indicates advertisers are increasing digital video spend, and the IAB expects the broader trend to continue. In a recent survey of marketing professionals across industries, 68% of respondents anticipated increasing digital video ad spend over the next year.

4. Online is poised to overtake TV’s top spot

Though 30-second TV commercials still command top dollar prices from big name brands, the charts above all show how fast the advertising media landscape is changing. But what’s the scale of this shift? A new report from PwC predicts that 2019 is the tipping point at which online will finally eclipse traditional TV to become the #1 market for US advertising.

At an $83.9 billion market, the opportunities in digital advertising are huge. Alongside parallel advertising shifts — from branding to direct response, agency to in-house campaign management, manual IOs to programmatic buying and selling — marketers have never been better positioned to effectively reach customers and drive ROI, on Father’s Day or any other day of the year.

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