Advertisers Fleeing TV, Radio for Internet, etc.

Emily Steel of the WSJ reported startling numbers from TNS Media Intelligence showing just how fast major advertisers are pulling money out of traditional media and throwing it into paid search, digital media, and other "unmeasured" advertising.  This trend has been underway for years, and the figures are backward-looking, but it's no wonder that traditional media conglomerates like Viacom are starting to panic:

In a sign of how major advertisers are shifting money out of traditional media, ad tracking firm TNS Media Intelligence reported that the nation's 50 biggest advertisers cut their spending on "measured" media such as TV, print and Internet display ads by 1.5% in 2006 -- though U.S. ad spending grew 4.1% overall.

While some of the decline may reflect overall cutbacks in ad spending by big marketers, it likely signals that big companies such as Procter & Gamble are reallocating some of their ad budgets to new Internet ad venues which aren't measured by TNS -- such as paid-search advertising, social networking and online video.

Not surprisingly, the report showed that growth in ad spending on traditional media, particularly newspapers and radio, continued to slow dramatically while spending on Internet display ads is accelerating. But it also highlighted a significant slowdown in ad growth among cable channels, after several years of robust increases.

Comments

[King Troll]

I was reading about that fucker from Blackstone in Fortune mag. I got to thinking bro, why don't you get a job in private equity? Are you not alowed to work their either?

Also, I came to realize Fortune is a real magazine after I got my new subscription. It put Business2.0 to shame. Those fuckers seem like wanabees. Their stable of writers are nothing but a bunch of fanboys like Om Malick, Battelle and whoever. Plus im fucking tired of that bullshit 1and1 20 page ad. Are you listening fuckers. You mag sucks horsecock.

Henry you cheapass fucking upgrade your website bro. If that bitch from GigaOm can have a decent site then you can too. oh an LOL at CNet's new Bnet. What a fucking joke.

[King Troll]

Henry i tried that new video ad service from those fuckers at SpotRunner. I think we will be using them for local video ads for my stores. I dont like their selection of commercials for my stores but they ar eperfect for my friends restaurant.

I dont get why Google doesnt get into local video ads/commercials. There's a whole slew of small business like myself that would advertise ($2000/month video, $2500/month radio, 1200 /month billboards). I always thought tv video ads were expensive. I didnt know they were that cheap.

Although i hate supporting web2.0 companies. I will be using Spotrunner. Until google launches one that is.

[Victor]

The secular trend into online advertising continues. It's one reason why revenue in that area is going to continue to grow gangbusters even though the rest of the economy may start to pull back. You only need to look at the size of the traditional ad market and the size of the online market to know there's a huge amount of growth potential in the future.

[AtomicTan]

Hey King T. Before you get in too deep with that company, you need to check out BareNakedAds.com - they do a free custom TV ad in 24hrs bundled with local or national air time. Or, go to Cheap-TV-Spots.com for a national quality custom ad and air time for less than any other online agency including the one you mentioned. Both Bare Naked Ads and CheapTVSpots.com won't add fees to the negotiated network rate like the company you're using now does (it even says they do, on their website). Also, both BareNakedAds and Cheap TV Spots will allow you to air anywhere locally or nationally, any time, and they allow distribution via e-mail, web posting and mobile without any restrictions or sneaky watermarks. Try that with a look-alike template-based ad and see how god-awful expensive they really are when priced apples to apples against a real discount agency.