Originally featured on BroadcastEngineering.com
Ad spending shifts to new media including mobile, says new Parks Associates report
New media is commanding increasing share of ad spend according to “Advertising Outlook: Shifting Dollars,” a new report from research firm Parks Associates. “As digital media consumption increases, advertisers are incorporating emerging advertising platforms into their overall media mix, with particular emphasis on interactivity and personalization to capture consumer attention,” said Parks analyst Heather Way. “This opens new revenue opportunities for content and service providers.”
Parks reports that almost 60 percent of media decision makers expect to spend more on broadcast network TV in 2010, and more than three-fourths expect their social networking advertising budget to increase. Spending on all major mobile advertising formats will likewise increase, with branded microsites, mobile video and text messaging expected to reap the largest year-over-year percentage gains. A majority would pay a premium for addressable TV ads, with almost 40 percent willing to pay upward of 20 percent more over traditional TV ads.
The new report includes a comprehensive survey of top-level U.S. advertising and media executives, an overview of different advanced advertising formats and where executives plan to spend their budgets, and an analysis and outlook of new digital media platforms including advanced TV, program guides, VOD, social networking, mobile content and microsites, mobile apps, SMS (text) messaging and mobile video, targeted ads in search, in-game, user-generated video, and e-mail. The report also offers strategic recommendations for advertising and media agencies, mobile content providers and application developers, Internet content publishers, broadcast and cable networks, mobile service providers, and DTV service providers.