Milestone of Worldwide Significance

TV on the InternetThe recent announcement by the Internet Advertising Bureau (IAB) in the UK that in the first half of 2009 internet advertising weathered the recession and grew by 4.6% to £1,752.1m, despite the entire advertising sector contracting by 16.6% during the same period again is an interesting and controversial claim. (

In the UK Technology is the biggest spender, accounting for 19.1% of the market, followed by Telecoms (13.3% rising from 9.7% the previous year) and Finance (13.2% up from 11.9%). Entertainment and Media was fourth with 11.8%, while Consumer Goods saw significant growth up from 6.2% in H1 2008 to 8.1% in 2009 as FMCG marketers steadily increased digital budgets.

The flip side to this and similar releases (from Nielsen) is the way in which online figures are arrived at and are they fair? For example the web is dominated by Search (almost 2/3rds) – online display obviously competes with TV – but in the UK display fell by just over 5% year on year.  However, this figure was bolsted by (wait for it) a 15% rise in spend on online video advertising.

However, whichever way this debate is spun it continues to be proven (at least in the UK) that TV is no longer the dominant advertising medium.

However, digital is far from ‘home and dry’… Internet advertising spend may have taken over the dominance of TV, but much of it slavishly follows a format dictated by the old world.  This (for me) is the point of interest.

Ian Tait the co-founder of digital agency Poke recently in a Marketing Week article talked about the difference between digital native agencies and those coming in from different areas (immigrants) – Ian sees those agencies that don’t have their roots firmly in digital tend to see interactive technology as simply another way of delivering what they have always delivered – digital natives on the other hand see technology as helping the creative juices ‘run free’!

In the UK TV rates are the cheapest they have been for 20 years.  Hence the move to online having slowed slightly.  Yet, it is interesting to see that P&G have embarked on a strategy to pay media owners on the basis of consumer engagement not Cost Per Thousand (CPM) impressions.  This creates the perfect bridge between the old and the new worlds – but with this bridge comes the caveat of real metrics.  P&G are looking to pay a premium for consumers who go beyond passively watching a TVC but, who go on to sign up for a newsletter, play games or watch videos.  In light of how well TV and web complement each other it is great to see that in the UK Thinkbox and the IAB are working together to deliver formal insights into this phenomenon (

So, digital agencies can no longer work in isolation.  Analogue and digital marketeers must work together.  Media will continue to rapidly converge and technology will facilitate channels to gather momentum through data insights on consumers – so that advertisers can relate to customers more intelligently.  Knowledge, as the old saying goes, is power, and nowhere is this more true than in post-digital era of marketing.


~ by rtymerej on November 3, 2009.

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