Media 2010

 

 Companies with end to end solutions that have a high degree of digital presence are expected to fare the best in 2010.  No-where is this more apparent than with established brands that fit well with Voice of the Customer and community engagement models.  Scaling does not have to be enterprise level in order to be highly cost effective, as long as the correct amount of attention is placed on identifying markets and customer placements on various web platforms, and penetrating them with invitational rather than broadcast messaging.   

While moving marketing allocations and spends online has proven out to be cost effective, don’t rely simply on banner ads  – rather look for creative value ad opportunities and vehicles to provide information or edutainment messages to customers of interest.  By providing something with value and substance, engagement becomes a partnership instead of the historic one way street.  By allowing and encouraging your customers to help craft messages and help determine what needs and interests that a company can service, you are ingratiating yourself in their domain of choice, and key customers and influencers will by definition opt into accepting advertising and value proposals put forth. 

Fail to meet the partnership bar however, and you can expect to fall into the “ignore” category.  If you are not addressing online markets in terms of customer engagement, retention, and analytics –good luck. 

For some reason the requirement for active participation with mutual value has yet to be embraced by many marketers and agencies.  If you are working with an agency that is still trying to penetrate markets with a % advertising allocation approach across Twitter, Facebook, MySpace, Google etc. without the foundational understanding of required people to people involvement, you should look for a different agency.  Push is out, Pull is in.  High touch does  not have to be high cost, but it does have to be transparent. 

eMarketer predicts that online advertising spending will increase by 5.5 percent to $23.6 billion in 2010, reversing a 4.6 percent decline last year. 

Search engine spending should be around 15%-20%, an increase from around 6% in 2009.  Search engines are THE gateway for discoverability, and will be so for some time to come.  Companies will continue to need a solid SEM and SEO strategy, and more sophisicated anagement and maintenence.  There is no slowing of the Google, Bing juggernauts – so you’d best assume a fair portion of your online budgets will be necessary.  That doesn’t mean you can’t be smart however, and move the balance of PayPerClick and Organic activities to be highly cost effective. 

“The difference between the Internet and traditional media like TV is that there are infinite possibilities” online, says Scott Schiller, svp of ad sales, Comcast Interactive Media. “Why would that change in 2010?”

If you want to be successful, hire a company to do comprehensive research into the infinite possibilities so that you can create a best fit roadmap and tactical plan.  There is no one size fits all, and there are no magic bullets.  Dominating your space takes diligence, homework and frequent adjustments – as well as direct participation by the corporate clients. 

 Just how does social networking fit into the digital media mix? Many contend that while nearly every major advertiser is interested in social media in some fashion, the true value for brands on sites like MySpace and Facebook lies in customer retention and analytics, rather than as vehicles for display ads.  Know where your customers are and how to engage with them.  Forget hype, there are plenty of tools available (Call us with questions) to assess when and where your targets are online for positioning and timing of your message.  This sure beats the ol Nielsen “rating” system where a dog in front of a TV was counted as an impression.   Digital really does have infinite possibilities – are you on board?  Are you working with experts?

Of course, no digital forecast is complete without someone extolling mobile’s potential for the coming year, and someone else tempering that prediction. 2010 is no different. Per eMarketer, mobile ad spending should jump by 42 percent this year; yet the medium represents just 3 percent of digital spending.

But at the very least, “in certain categories, mobile will have a definite seat at the table,” says Schiller. “Media buyers like to buy what they know and understand. And everyone has a Blackberry and iPhone.” 

 

Thanks to ubiquitous wireless broadband networks and a variety of portable Internet access platforms, the solution, increasingly, must be anywhere and anytime.

And what about TV?   What about local opportunities?  

Stations are cultivating online and mobile revenue in the effort to build new business models. According to BIA/Kelsey, TV stations can expect to ring up about $600 million in online ad revenue in 2010, versus $463 million in ‘09. As part of those initiatives, stations are partnering with other local stations to create video news pools and going hyperlocal both online and on-air, trying to find solutions to expensive syndicated programming.  This plays hand in glove with an astute local online search effort, and ROI can be delivered in a matter of months.  Companies with sponsorship agendas, such as those with athletics, sports, or celebrities should take note.  Regional and local scaling is affordable and beneficial.
“We’re all going to be focused on those other revenue streams,” says Paul Karpowicz, president of Meredith Broadcasting. “You’ll see a lot more emphasis on local programming. In an environment where ratings are scarce, if you can create a format that has sponsorship, product integration elements, that becomes attractive.” In total, all of TV’s additional revenue, including Internet, mobile, digital subchannels and retransmission could account for as much as 13 percent of TV stations’ revenue, with online and retrans representing more than 5 percent each, according to TVB.  This is a BUYERS MARKET.  Companies with a strong marketing mix that is both traditional and digital, and with a solid understanding of new market dynamics – can literally call the shots.   

Astonishingly, no-one is sure why the concept of digital re-mixing has taken so long for marketers and advertisers to understand.   For the agencies and corporations alike, the current environment is a marketers dream – and prices and barriers to entry are low.  Do your homework, and come out swinging!