Media Share Shifts Continue
In the New York Times today, an article titled No More Same-Old lays out the challenges facing advertisers and advertising agencies in today€™s €œconnected€ and ever changing world.
According to Universal-McCann during the last 5 years, only three media categories have increased their overall ad budget share €" direct mail, cable TV and the Internet. Share losses were felt by the €œbig-four€ traditional categories €" newspapers, broadcast TV, radio and magazines. And though left out of the analysis, Yellow Pages too lost share during the last 5 years. More evidence that media that can target audiences more precisely €" closer to where those audiences make buying decisions €" is on the rise. Yellow Pages can make this claim too €" so why hasn€™t it gained share in the last 5 years? It maybe that Yellow Pages lost its way when instead of focusing on the value proposition €" Yellow Pages usually offers a great ROI – publishers and their legions of sales people began pushing color, double trucks, cover, spine, tip-on and other high-revenue items.
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Certain Internet advertising formulas may also risk long-term value proposition erosion in favor of short term revenue maximization. Auction models and pay for placement models, while positioned as â€œdemocraticâ€ and the â€œvoice of the marketâ€, provide maximum performance, by definition, to only a finite number of advertisers. While inventory constraints help bid ad prices up, the percentage of advertisers willing to name their own price increases, however, is undoubtedly limited; historically, SMEs have been trained to negotiate rate cards down.
They are being trained everyday to negotiate rates cards lower and lower . . . if they wait long enough they'll get a really good deal since the demand for their ad budgets increases everyday.
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