Wednesday, January 22, 2014

Take These Predictions to Las Vegas and Win a Fortune!

 

New year, new research.  Here is the outlook for spending on advertising in San Antonio for 2014 and beyond.  This information is derived from Borrell Research .  Borrell tracks local market spending in more than a 100 business segments and projects advertising and promotional spending levels for each of these segments down to the local market.  They are best known for tracking digital spending.  If you would like to see this data on a single business segment (health, education, tourism, retail, etc.), just let me know and I will send it right over.  These numbers represent Local spending only – advertising dollars generated and spent in San Antonio.

Total Spending By Medium In Millions

 



At a glance, the trends for most mediums shows modest growth over the three years projected. 

·       By 2006, Cable TV, Cinema, Local TV, Newspapers and Out of Home show growth over 2013.

·       Direct Mail, Directories, Other Print and Radio show decreases in spending. 

·       Telemarketing remains flat over the four years.


The largest growing category is undeniably Online.  Where is the online growth coming from?

Online Spending in Millions
 

·       The two growth categories are in Targeted Display and Online Video.

·       Email and Search are showing signs of declined spending.

·       Static Display is in a free fall.

Think NSA

There are several factors contributing to the growth in these two categories.  Our ability to target ads today is unprecedented.  Combine geography with demographics, behavior, and site content with ad insertion at the content level.  Does your client fix roofs?  Their ad can run next to an article on storm damage.  Also “Hands down, search ads beat display ads in click through rates (CTRs). Display ads are simply more visually appealing than simple text ads and offer more rich media flexibility.

Video advertising will increase for two important reasons.  First, the targeting available for video now mimics the targeting you achieve with Targeted Display.  Not only can you target consumers by geography, demographics, behavior and site content, you now can target consumers based on story content.  An ad for The Children’s Hospital of San Antonio can run as a pre-roll video in front of a story driven by keywords and phrases – like The Top Three Ways to Baby Proof Your Home. 

Another powerful factor in the growth for Video advertising is the cost benefit.  Retailers are looking at Online Video as a way to move displaced TV dollars because of rising TV rates in the market.  As the rates increase throughout the year, they are faced with fewer spots at higher rates.  Now there are viable online options to keep that money in the market working for them, with some added benefits.  Online video targeting is increasingly more accurate.  Since tracking is online and almost instantaneous, you know the spot was watched and are not at the mercy of ratings (estimates) and postings (history from the previous quarter).  If a spot’s performance isn’t meeting expectations, we can move the ad to a web site that is working better.  This week.  And unlike broadcast advertising, the online nature, with the click through option, allows you to develop creative ideas that would not work on air, but are powerful motivators to encourage online behavior.  “Click on my head now to save $5!”

Now you know the future of advertising in San Antonio.  Book it!

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