2019, the global advertising companies cumulatively spent 700 billion dollars
on advertising. Can you guess how much the 700 billion dollars will be split
between digital and analog advertising? The number sits at just 40%, and it is
surprising that 10 years ago, in 2009, the number was just 10%. Needless to
say, in 10 years’ period, television, radio, print, magazine and other
traditional media advertising spending, to little surprise, on a decline curve.
all digital spending going?
not here talking about the fall of traditional media, but we are trying to
delve deep into digital advertising. Do you know two-thirds of digital
advertising budgets spend on mobile advertising? Here is a surprising fact for
you – only 6% of consumers spend just 12 minutes out of an average of 3.5 hours of
mobile usage in mobile browsers. So, a large part of media spending is moving
from analog to digital, desktop to mobile, but surprisingly not to the mobile
to various ad blockers, most of the millennials now block traditional digital
ads, while more than 70% of Gen Z avoid these ads altogether. Even, remarketing
campaigns are considered “too aggressive” and intrusive.
lining among the dark clouds!
the digital advertising industry is knee-deep in trouble, but there is hope in
despair. In a study conducted by Kantar Millward Brown, London-based data
analytics and brand consulting company, 77% of both Gen Z and millennials are
positive to real people in real setting advertisements. So, people are positive
about social media feeds, tutorial ads, sponsored events, advertorials and
similar types of sponsored content. Gen Z is particularly receptive to ads that
told an interesting story with humour and great music.
The Impact of YouTube
Six in ten YouTube subscribers
would follow advice on what to buy from their favourite creator over their
favourite TV or movie personality.
Seven in ten YouTube subscribers say that YouTube creators change or shape culture.
70% of teenage YouTube subscribers say they can relate to YouTube creators more than traditional celebrities.
86% of viewers on YouTube say they regularly turn to YouTube to learn something new.
“The best time to plant a tree was 20 years ago. The second best time is now.” - Chinese Proverb.
The proverb is well-meaningful for traditional media spending, but what social
media and technology have done to today’s consumers, advertisers don’t need to
wait but to plant a faster-growing tree for less tomorrow.
media spending is cheaper than traditional media, there’s an even bigger
audience, and you can take an easy cue from the success of others. Previously,
consumers were manipulated in the hands of journalists, media moguls or
celebrities, but now advertisers need to give them something of value,
otherwise, they will be soon obliterated from the scene.
advertising has captured the eyeballs of billions of people worldwide. It is
easy, inexpensive and requires less time to execute. Earlier, people were
hooked to bloggers, WordPress, Facebook and Twitter. Today, advertisers are
finding great avenues through Instagram and YouTube. Who knows what will be the
next breakthrough in the coming future. Today, individual content creators have
more power than big media companies. Advertisers have no way now influence people
but the situation is just flipped where advertisers have to follow along and
play by the rules of the consumers.
In the next few years, big brands will be going to set the majority of the budget
of their media spending to influence marketing. If you think it is some
short-lived fad, you are wrong. It is a seismic shift in media consumption.