Maurice Levy Cheap NBA Jerseys , chairman and chief executive of the world's fourth-largest advertising network, Publicis Groupe, warned the publishing industry today that it faced a "deep and profound structural crisis" that would not be remedied simply by recovery from current economic hardships.
Speaking at the FIPP World Magazine Congress in London, Levy said that newspapers' and magazines' share of the advertising market would continue to shrink in 2011, despite economists' forecasts that overall growth in media revenues could return by that time.
A lot of companies are losing confidence in traditional marketing methods and advertising media. You only have to take a look at the headlines:
"Harvey Norman to Slash Ad Budget by $60m; moves online"
"GM to slash $800M from North American Budget"
Nearly 65% of CMOs and marketing execs say their ad budgets will decrease because of the troubled economy, but more of their money will go into digital marketing than before Cheap Jerseys Free Shipping , according to Epsilon.
The question is - why?
Changing World, Changing Trends
No doubt the world recession brought on by the credit bust in America has contributed to the slump in advertising budgets. However, it's more than that.
The changing trends of the information age and the methods of distribution and consumption coupled with the uncertain times we live in are creating an enormous challenge for companies to better reach and engage with their customers.
Changing consumer behaviour is increasing the need for companies to stay competitive and be cost effective. This is translating into the need for companies to have a clearly defined, results-driven and measurable marketing campaign.
Because the impact of traditional mass media (TV, print and radio) on sales tends to be less measurable than direct-response media (such as the internet) in a downturn especially, one would expect that many mass-media budgets will be cut in favour of measurable media Cheap Jerseys From China , although often those budgets are cut as well.
Looking at the Google's profit results in the face of this economic slump however, we are seeing a continuation of the switch to internet and digital marketing.
Are businesses pulling out of advertising and print-based digital media and allocating significant money and investment into digital media? Yes they certainly are, although many are using cost cutting as the primary rationale behind those decisions.
There is no doubt that internet marketing is more intent driven, point-of-purchase, highly relevant, targeted and measurable method of advertising that traditional TV and print. It allows marketers to have a better track of their marketing spend and Return on Investment (ROI).
Digital (online) marketing is also significantly more cost effective.
Newspapers are folding and other traditional media are feeling the pinch to move online. Budgets will follow audience.
Is your company moving it's budget to digital marketing efforts?
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