November 9th, 2010 21:24
Recent research from Deloitte's Global State of Media Democracyhas shown consumers consumption of media is increasing while their source of media consumption has begun to shift. The report states that while TV, radio and periodicals continue to be the bread and butter of media consumption new media platforms are successfully competing for consumers' attention and will be the primary growth drivers in the years to come. What does this mean? It simply means TV, radio and print won't die but neither will they show substantial growth. This translates into advertising budgets remaining flat in those areas while line items such as online video advertising and mobile advertising will get the bulk of new marketing money. The overall report points to some very interesting trends in global media consumption, which seem to point in the direction that consumers are moving in the direction of pulling their media rather than having their media scheduled and pushed to them.
TV remains supreme as the overall media platform of choice, but the computer is rapidly becoming an on-demand tool to consume video as well. This suggests a future combination in the living room of live-viewing though cable, on demand viewing through DVRs and cable and Internet-ready devices that can deliver hosted content from companies like NetFlix, Hulu or YouTube. As the combination continues to mature, brands and agencies will need to shift their budgets to support on-demand products, but must do so carefully along the lines of pull advertising.
One early indicator of the popularity of pull advertising is Deloitte's research indicating online advertising has begun to lose it's sway while social advertising has increased its influences. The report shows on-line advertising is increasingly being viewed by consumers as annoying or invasive with consumer reluctant to hand over personal information. This has given rise to opportunities in social media advertising which now ranks fourth in Internet activity behind search, email and news. Consumers who are surveyed say that online reviews and ratings provide more influence than simply seeing Internet advertising. Once again, consumers are responding much more to pull marketing rather than push marketing.
While social media has risen exponentially, the new star on the rise continues to be smartphones which are now outselling PCs globally. Popular features continue to be built-in cameras and text messaging, but other features remain unused due to either expense, consumer perception those tasks can be handled by a different device, or the consumers view they don't need to install an application for its advertised use. This indicates that consumers are more likely to pull media like mobile video from messaging rather than from apps.
In conclusion, advertisers should be aware of consumer shifting towards an on-demand world of media consumption to not only take advantage of the shift in terms of impressions, but also to make their advertising along the lines people are consuming their media; on-demand and pulled from the source.
It's clear from this report that consumers continue to embrace media that they elect to pull such as on-demand movies, social media recommendations and search queries, but they resist push media such as Internet advertisng and giving personal information outside of known social networks. Media budgets in the coming years will continue to follow these consumer trends and while traditional and online advertising will remain popular, it will need to layer in interactivity to remain relevant.