New media expected to generate more ad dollars
By Erina Lin, Wednesday 26 March 2008 at 22:13 :: Advertising :: #1452 :: rss
Due to changing consumer habits, U.S. advertisers and marketers are about to switch their investments to new digital and out-of-home media platforms, according to the latest forecast from research firm PQ Media.
The report pointed out that companies will spend over $160.8 billion in 2012, 82 percent more than in 2008, on 18 emerging markets, which include online videos, store-based TV screens, sponsored events, TV and movie product placements, mobile phones, video games and digital video recorders.
"Americans are spending more time out of the home, working late hours, communicating via wireless devices, shopping in malls and stuck in traffic. There has to be some change in (ad/marketing) strategies to reach these people," PQ Media CEO Patrick Quinn told USA Today.
The new platforms are expected to make up 27 percent of all ad and marketing spending in 2012, up from 16 percent this year.
The study predicted companies will allocate their marketing budgets away from traditional media, such as broadcast TV, newspapers and magazines, USA Today reported.
Quinn believed that "businesses are going to create trade organisations and standard metrics. And then, some variables could change."
Sectors expected to see the biggest gains by 2012 include:
- Online search: Spending will jump 113 percent to $26.1 billion, for both ads and services giants and smaller providers.
- Event sponsorships: Spending will total $33 billion, up 72 percent from last year.
- E-direct marketing: Spending will reach $22.1 billion, up 121 percent, for companies to pitch messages to consumers via e-mail and pop-up ads.
- Online video and rich media: Spending will jump 389 percent to $12.2 billion.
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