Monday, December 28, 2015

TV is Still King, but Internet is Closing Fast!

New U.S. ad spending forecast data shows that while TV advertising expenditures continue to rise, Internet advertising may take over the leadership spot in the next few years.

Marketers in the U.S. now spend $421 billion annually, or $1,298 per person. Of that total, a little less than half is spent in major advertising, media with the rest spread among sales promotion, mail, telemarketing, etc.  I came across this interesting new media data from Advertising Age last week while doing industry research for my Advertising class.  According to Ad Age’s 2016 Marketing Fact Pack, total major media in 2016 is expected to be $189.8 billion.  Television is still king with spending expected to be $67.1 billion, followed by Internet media at $59.7 billion.

Since 2010, total major media spending will be up by about 25%, with the largest gains coming from Internet media.  The biggest losers are print media with Newspaper being hardest hit, followed by magazines.  Radio, was supposed to die after the 1940’s when television first came out, right? Radio is still alive and kicking seventy years later.

Source:  ZenithOptimedia

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Wednesday, December 23, 2015

2015: Mail Still Isn’t Dead!

Well into the digital age, mail is still a major media choice for marketers. Total mail volume is down about 25% from its pre-recession peak in in 2006, according to the USPS Postal Facts report.  Most of that decline is due to less use of first class mail by both individuals and companies.  That being said, in 2014, 155 billion pieces of mail were sent, generating  $67 billion in revenue for the USPS.

Volumes for standard mail, formerly known as bulk mail or marketing mail remains virtually unchanged since 2010.  In 2014, businesses mailed over 80 billion pieces to over 153 million addresses.  Clearly, for many companies mail still remains a viable marketing tool well into the digital age.  According to a recent Direct Marketing Association (DMA) report, 77% of companies use some form of direct mail to their customers and 73% send direct mail to prospects.

Postal Facts 2015, United States Postal Service

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Categories:   Advertising | Direct Mail
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Tuesday, July 26, 2011

Quantifying the Value of a Facebook Fan

I recently came across an interesting article in Advertising Age which quoted a joint study by ComScore and Facebook.  The study stated that brand posts actually reach more friends-of-fans, than fans itself which shows how much leverage social media can really have.  To use the example highlighted in the article, a Starbucks post to its fan page in May reached about 6.5 million of its 24 million fans.  An additional 11 million people were reached by fans "liking" or commenting on the post - these were the friends-of-fans.  Ad Age noted that the 17.5 million "reached" by the Starbuck's post didn't go to the Starbucks brand page, but saw the activity in the form of a news feed or friend's profile view.  Still, a tremendous result and that combined reach of fans and friends-of-fans equates to 8% of total U.S. internet users -- at zero-cost!   The link to the article is below:

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Categories:   Advertising | Social Media
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Wednesday, October 13, 2010

Social Media Use By Generation

I've often heard that, "adults don't really use Facebook or other social media" when we have recommended using social media to clients.  While doing research for the Direct Marketing, Social Media and E-Commerce class that I co-taught in September at St. Joe's Executive Master's in Food Marketing Program with George Latella, I came across an international study from Deloitte that suggests otherwise (chart below).  As of December 2009, almost half of the Baby Boomers and more than one-third of the Matures (65+) use at least one of the major social networking sites.  While that information is now one year old, I would expect it to show dramatic increases in penetration for the older generations throughout 2010.  Imagine my surprise when I got a Facebook friend request from my 83-year-old mother-in-law last summer!  At that time, she had three friends - my wife and her two sisters. 

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Tuesday, September 28, 2010

Brand Appeal: Degrees of Warmth and Competence

For as long as I can remember, marketers have been applying animal or human characteristics to their brands to communicate a "brand personality".  But, I don't remember hearing that there was any real "science" behind that.  However, a recent study seems to suggest that there is something to it, afterall.  

In an article in Forbes Magazine, Chris Malone of Relationship Capital Group says, "According to a recent study of more than a thousand representative U.S. consumers, people respond to brands in much the same way they instinctively perceive and judge one another--on the basis of warmth and competence. Companies that understand what really lies behind that dynamic have a chance to win the kind of deep customer loyalty that has been elusive even for highly successful national brands." 

Recently, I had the good fortune of hearing Chris speak about how people view brands to a graduate level class in the Food Marketing Program that George Latella and I co-taught at SJU.  Chris's insights came from the research study his company conducted in July, 2010 using researchers from Princeton University.  One of the conclusions from the study was that there was a statistical correlation between how the brands in the study ranked on "warmth" and "competence" and purchase intent.  The brands in the study were McDonalds, Burger King, Shell, BP, Tylenol, Advil, Minute Maid and Tropicana.

I found this fascinating, and very promising for use in advertising and other forms of consumer marketing communications.  Does this also suggest that brands reaching out to form relationships with consumers through social media is on the right track?  I think so.  The link to the Forbes Magazine article is

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