It’s Not All Doom And Gloom

It’s Not All Doom And Gloom
SHARE
THIS



In response to Starcom’s Mid-Year Update, The Interactive Advertising Bureau’s CEO Alice Manners argues why it doesn’t paint the whole picture.

As everyone who works in this industry well knows, data can tell many different stories, depending on how it’s packaged.

This week’s Media Futures Mid-Year Update for 2014 by Starcom is a perfect example. The report noted that advertisers are expecting a year-on-year reduction in advertising expenditure, including online media, of 3.8 percent in the second half of 2014.  This ‘correction’ from earlier predictions of a 2.6 percent increase was described by Starcom CEO Chris Nolan as “unprecedented” and “unusually large.”

While I can’t argue with his data, I have to disagree with his conclusions about the industry and in particular online for one simple reason – the Starcom report only looks at the advertising revenue flowing through media buying agencies.

In online, as with a number of other channels including radio and newspapers, there is a lot of direct activity between advertisers and media owners.  Then of course in online the majority of search advertising expenditure is direct, as is a healthy proportion of social media dollars. So while Starcom’s report may indeed accurately reflect their client base and direct activity with agencies, it’s not the full industry picture.

The IAB / PWC Online Advertising Expenditure Report (OAER) provides a much more rounded view thanks to its multiple sources.  It’s showing that online advertising expenditure has had four consecutive years of steady growth and it reflects a dynamic, expanding industry. The next OAER is due out end of August and we’re expecting to see strong growth in mobile, social, video and search and an overall increase on the already strong 17 percent year on year growth reported in the March quarter.

Starcom’s Report also made the distinction that paid media is declining, while owned and earned media would rise.  I’m not so sure about that.  The industry works hard to find the right balance of P-O-E (Paid, Owned and Earned) but its focus is allocating, optimising and attributing advertiser investments on all platforms rather than putting one over another. It’s all about connecting consumers with brand messaging and brand experiences in all paid and organic online media channels.

Another voice in support of the growth of online media is Mary Meeker, a leading commentator on the digital economy.  She has spoken often about the disconnect between time spent with media and the allocation of marketing investment by channel. Meeker’s expectation is that the eyeballs and the advertiser dollars will reach parity.  There is no doubt we are getting closer to seeing her prediction come true, with online across all channels continuing to grow.  This is due at least in part to the hard work and innovations from media owners, both digital and traditional, to invigorate the paid media sector with responsive assets and data that adapt to channel, use state and device.

Indeed in the most recent CEASA report, digital had increase to 30 percent of total advertising expenditure in Australia for the financial year and it’s expected to exceed 35 percent for the full calendar year.

Regardless of whether we agree or not on the Starcom Report findings, there is one very important underlying message. Everyone in the media industry has to work harder to gain the same or even more marketing dollars.  We have to provide value and we have to get better as an industry at proving that what we are doing is working for our clients.

Please login with linkedin to comment

creative directors Foxtel iKnow Online Advertising Inventory United Kingdom

Latest News

AUSTIN, TEXAS - JUNE 18: (EDITORIAL USE ONLY) (Editors note: This image was computer generated in-game) Alice Powell of Great Britain celebrates her podium position during the W Series Esport League Round 2 at Circuit of The Americas on June 18, 2020 in Austin, United States. (Photo by Clive Rose/Getty Images)
  • Media

Getty Images Inks Deal With W Series Esports League

Getty Images and W Series have announced an exclusive deal which sees Getty Images serve as the Official Photographic Partner of the newly launched W Series Esports League. Brand-new for 2020, the W Series Esports League will see W Series drivers from around the world compete in the first official women only simulated racing league. […]

Closeup of a man hand holding cellphone with internet browser on screen. Man with spectacles relaxing sitting on couch while looking at mobile phone. Closeup of mature latin man using smartphone to checking email at home.
  • Technology

What’s Next For Advertising On iPhones?

Wondering what's next for advertising on iPhones? You could give Tim Cook a call or, failing him answering, read this.

by B&T Magazine

B&T Magazine
FutureBrand Australia CEO Rich Curtis Acquires The Global Branding Company’s Australian Operations
  • Media

FutureBrand Australia CEO Rich Curtis Acquires The Global Branding Company’s Australian Operations

Rich Curtis has acquired FutureBrand’s Australian operations from Interpublic Group. The new ownership will enable the business to double-down on its commitment to the Australian market and invest locally, while still maintaining its global network via FutureBrand as an affiliate. Since opening its doors in 1999, FutureBrand has created and transformed iconic brands including Nespresso, […]

Newsreader Katrina Blowers Launches Claiming Your Confidence, The Podcast
  • Media

Newsreader Katrina Blowers Launches Claiming Your Confidence, The Podcast

Big names share their biggest confidence challenges on Claiming Your Confidence, The Podcast, hosted by Channel Seven Newsreader and author Katrina Blowers. The new show launches July 13 on iTunes and Spotify with three episodes dropping on week one:  featuring Sunrise Host Edwina Bartholemew, Comedian Merrick Watts and record-breaking Ultra Runner Jacqui Bell. Each week […]

Production house Sam I Am Steps Up Roster With Five Fresh Directors
  • Media

Production house Sam I Am Steps Up Roster With Five Fresh Directors

Full service production house Sam I Am has announced the arrival of five new commercial directors including writer-director Aimée-Lee Xu Hsien Curran (pictured), designer-turned-director Sinéad McDevitt along with directors Anita Lee, Dominic Allen and Joris Noordenbos. Writer-director Aimée-Lee Xu Hsien Curran creates work defined by rich visuals across both comedy and drama. She has directed […]

DiDi Partners With Urban List For Make It A Date Campaign
  • Campaigns

DiDi Partners With Urban List For Make It A Date Campaign

DiDi Australia has partnered with lifestyle publisher Urban List for its Make It A Date campaign, encouraging Australians to reconnect and commit to meaningful time with one another as COVID-19 restrictions lift across cities. The collaboration sees Urban List provide curated in-app destinations and venue recommendations to inspire Aussies to ‘make it a date’ and […]

Archetype Appointed By HTC, Tile And Upright Technologies
  • Media

Archetype Appointed By HTC, Tile And Upright Technologies

Strategic communications and marketing agency, Archetype, has been appointed by HTC, Tile and Upright Technologies to drive awareness and sales for each brand’s consumer technology products. The agency has put its strategic and holistic thinking first, evolving the approach to market for all three product offerings. The new additions to Archetype’s portfolio showcase the agency’s […]

Wrike Introduces New Marketing Tool
  • Technology

Wrike Introduces New Marketing Tool

Wrike unveils new marketing tool that apparently comes wrapped in excess bubble wrap for those who enjoy a good popping.

Music online concept - phablet and headphones on the wooden desk
  • Media

SCA’s Live Radio Streaming Audience Up 35% Year On Year

SCA’s live radio streaming continues to rise with 1.1million listeners recorded at the end of June 2020, up 35 per cent year on year. Catch up radio podcasts continue to be on trend with a total of 3.2 million downloads recorded at the end of June, this is a 49 per cent year on year […]

SWM Enhances Audience Intelligence With New Location Data Partner
  • Media

SWM Enhances Audience Intelligence With New Location Data Partner

Seven West Media has enhanced its audience intelligence offering for advertisers thanks to a new partnership with Australian mobile location intelligence platform LANDMARKS ID. LANDMARKS ID enables SWM to integrate its technology directly into the 7plus app to collect, analyse and provide rich audience profiles on 7plus app users. The new partnership improves SWM’s ability […]