Context Is Everything
As noted in many Media Group Online reports, a plethora of media/advertising pundits, prognosticators and poohbahs have been sounding the death knell of traditional media, TV specifically, at the evil hands of digital.
The data is quite clear that digital ad spending has surpassed traditional media, and TV specifically, but the data and the conclusions reached must be understood within the context of their presentation.
For example, January 2018 analysis from Winterberry Group stated “measured” media spending is expected to be $117.4 billion for 2018, with $97.8 billion in offline media and marketing and $100.8 billion in digital media.
The well-respected Jack Myers in his TomorrowToday 2018 forecast shows total digital ad spending of $67.8 billion, compared to $51.4 billion for national TV ad spending. He further estimates that 2020 digital ad spending will be essentially double that of national TV ad spending, or $109.4 billion and $56.4 billion, respectively.
Of course, you don’t sell national TV advertising. It’s what will happen locally that affects you, your station and your clients.
In our December 2017 Newsletter, we presented BIA/Kelsey data that indicated direct mail will receive the largest share of 2018 local media ad dollars, or 25.4%, $38.5 billion, with TV second, at 13.8% share, $20.8 billion.
In one of its latest releases (March 8, 2018), BIA/Kelsey reinforces a Media Group Online mantra: TV and digital are the best complementary advertising media; it’s a mistake to think of them as adversaries.
According to the BIA/Kelsey release, 51.3% of retail SMBs surveyed during Q3 2017 said their TV advertising delivered either an “excellent” ROI of 10–19x or an “extraordinary” ROI of 20x plus. Although social media was the most popular advertising channels among these retail SMBs, they both recognized and achieved more value from their TV advertising investments.
BIA/Kelsey did not state the ROI of a combination of local TV and digital media, but it’s very likely it delivers at least “excellent” or “extraordinary,” and probably more (“stupendous”?). This is the kind of insightful advice and guidance local advertisers want from media reps – and only you can provide it.
