Merchants Adjust Marketing to Match Media Consumption

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A close look at the num­bers that have been tal­lied up for 2010 can tell us about the recov­ery in the ad mar­ket. The num­bers can also indi­cate what mar­keters think about which media chan­nels deserve a high­er per­cent­age of the ad bud­get. Most experts have been impressed with the rapid growth of the online ad sec­tor. But eMar­keter ana­lysts sug­gest that this chan­nel should gain even more of the ad dol­lar to match the amount of time con­sumers spend online.

If mar­keters were to fund each mar­ket­ing chan­nel strict­ly cor­re­lat­ed to the time con­sumers spend with var­i­ous media for­mats, TV would still come out the win­ner. Last year, U.S. con­sumers spent the largest por­tion of their time, 42.9% dai­ly, engaged with TV. As a result,  in total, mar­keters allo­cat­ed 42.7% of media spend­ing on TV. eMar­keter CEO Geoff Ram­sey, says when it comes to online ad spend­ing, he sees a huge mis­match. Pre­vi­ous­ly, ana­lysts and mar­keters were not exact­ly sure of the extent of the mis­match. But eMar­keter research indi­cates that it’s a gap of 6.5%. Con­sumers spend 25.2% of their media time online. Mar­keter spend 18.7% of their bud­gets on online chan­nels. eMar­keter data also shows that con­sumers spend 8.1% of media time engaged with mobile devices. Mar­keters, so far, have only spent 0.5% of ad dol­lars on mobile. Ana­lysts do point out, though, that not all mobile device time can be con­sid­ered a pos­si­ble resource space for adver­tis­ing and say that this time is “devot­ed to com­mu­ni­ca­tions activ­i­ties mar­keters are not look­ing to inter­rupt.”

Of course, mar­keters must con­sid­er more than just a raw one-to-one ratio with respect to time spent ver­sus influ­ence when allo­cat­ing the ad bud­get over mul­ti­ple chan­nels. How­ev­er, the eMar­keter study does pro­vide an inter­est­ing top-down analy­sis. The company’s ana­lysts even cal­cu­late the rate of ad spend­ing per hour by media for­mat. For exam­ple, adver­tis­ers spent $0.53 for each hour con­sumers read news­pa­pers ver­sus $0.12 for each hour they spent online.

Mar­keters will like­ly be adjust­ing these per­cent­ages reg­u­lar­ly as con­sumers con­tin­ue to embrace con­tent online.

[Source: Ad Dol­lars Still Not Fol­low­ing Online and Mobile Usage. Emar​keter​.com. 31 Mar. 2011. Web. 12 Apr. 2011]
Kathy Crosett
Kathy is the Vice Pres­i­dent of Research for Sales­Fu­el. She holds a Mas­ters in Busi­ness Admin­is­tra­tion from the Uni­ver­si­ty of Ver­mont and over­sees a staff of researchers, writ­ers and con­tent providers for Sales­Fu­el. Pre­vi­ous­ly, she was co-owner of sev­er­al small busi­ness­es in the health care ser­vices sec­tor.
April 12, 2011 Media Usage Tags: , ,