A new survey of marketers conducted by the Association of National Advertisers has discovered something interesting, but not terribly surprising about the new media rage. According to the survey, more national companies are dedicating larger portions of their ad budgets to new media. But it also finds more companies questioning the effectiveness of their new media investments.
78% of companies surveyed said that they planned to spend more on new media like online ads, social networks, search engine marketing, mobile and viral video in 2012 than they did this year. On average, this represents 14% of their total media spending – up from 10% in 2011.
So, with more spending come better results, right? Not necessarily. Compared to a similar study in 2009, marketers in general, are complaining that bigger investments in new media are not always producing the desired results.
“While marketers have substantially increased their use of new media platforms over the past few years, they are beginning to question the effectiveness of some of these vehicles,” Bob Liodice, president and CEO of the ANA said. “The ANA survey indicates a strong willingness by marketers to integrate innovative new approaches into their marketing mix; however, this enthusiasm is tempered by concerns regarding the ROI of these emerging options.”
Or in other words, anyone who thought that new media was going to quickly transcend old media (i.e. television) was perhaps blinded by all the glitter.
80% of TV Viewing is still in Standard Definition.
Although 56% of homes in the U.S. now have a HDTV, only 20% of TV viewing is being done in high definition, according to the Nielsen Company.
Few Ads are in HD.
TV networks may be moving quickly on developing HD programming, but advertisers are far behind. A new study from Extreme Reach, says just 13% of all TV commercials that ran in 2010 were produced in high definition.
People do more than watch TV while watching TV.
A study of over 8,000 people from Nielsen and Yahoo recently discovered that 86% of mobile Internet users play around on their devices (smartphones, iPads, etc.) while watching the tube. It seems that Googling random facts, checking their Facebook news feed and checking their Twitter account were atop the list of activities to do while watching TV. A bit of good news for advertisers: 20% confessed to search for more information about a commercial they recently saw.
In an industry that’s driving money into social media and other communication platforms Joel Ewanick, the head of marketing for General Motors, believes some of the best campaigns still begin with Television.
“I love television,” he said. “(Some) people say television is dead, it is not dead. It drives a lot of traffic.”
In July, approximately two months after Ewanick joined GM, the company aired its first Chevy Corvette TV commercial in five years. The spot, titled “Still Building Rockets,” contrasts NASA scientists developing and launching space rockets with a Corvette being built and burning rubber on a test track.
According to Ewanick, Chevrolet will unveil a Silverado pickup TV campaign in October, which features the good-natured teasing that occurs when Silverado owners visit with owners of other brands. Additionally, GM will be returning to run Super Bowl advertising in February.
Ewanick believes TV remains a key medium for selling and driving traffic to dealer websites. According to Automotive News, Ewanick – who spent about the past three years as Hyundai Motor America’s marketing chief – said he likes the current Hyundai “Uncensored” campaign. In it, Hyundai test drivers give straightforward opinions about how they feel behind the wheel of the vehicles.
“That campaign began on TV then moved to Facebook and other social media sites to continue a lively dialogue for Hyundai owners and others,” Ewanick said.
That’s a good model for how a campaign can launch on TV and expand into other media, he added.