Which Marketing is More Effective: Traditional vs. Digital Advertising – Erik Olson

Which Marketing is More Effective: Traditional vs. Digital Advertising – Erik Olson


all right well I need talk I wanna give a lightning talk it’s about the chef’s shifts in attention and ad spend over time so before I get started just a real quick poll of the crowd who here works primarily in TV or you know quite a bit in TV anybody TV TV okay all right what about print anyway any printer all right print print newspapers anybody radio also radio okay how about digital anything Internet online okay all right and how about billboards out-of-home a little bit cool all right so I’m going to talk about how attention and dollars have been shifting between those categories of media over the last 18 to 20 years and the projection is going forward all right so first TV yeah I have an antiquated TV in here obviously I think yeah certainly in our lifetimes even mine and I’m probably one of the older people here I’ve never watched TV on that TV but the point is that over the history of TV it has changed quite a bit so you used to turn on the TV and you would watch effectively whatever came on it was linear and it just went from one program to the other but nowadays there’s a lot of other options for you all right so there’s Netflix there’s Smart TVs connected TVs there’s Roku Hulu there’s a lot of different ways to get that programming so when we say TV that there’s a lot of caveats that go along with that it’s not just TV there’s you know you have to really kind of identify what kind of TV so TV itself is shifting same with radio so radio was very linear back in the day and it’s still oh you know very linear in nature in some cases like Sirius satellite radio which is what I have in my car you know I’m listening to whatever they’re playing I’ve got a lot of different selections and most of them are commercial free so I’m trading dollars instead of time and attention to get the programming that I’m the muses they don’t want but it’s it’s linear still it’s just delivered in a different fashion there’s also I don’t know what you call these things on the top right I guess if it’s a smart TV on the previous slide this would be a smart radio but you have a lot of functionality we can play things like your podcast and you play your own music through your car radio for the most part radio is listened to in cars right I mean I know we probably have them in our homes somewhere although actually I don’t have a Radeon my home some people probably do but if you’re going to listen the radio it’s usually on the commute to work so I mentioned billboards to Flora when I was pulling the group billboards have trains changed drastically I said they used to be you bought real estate by the week or the month and you got your offering printed and it was plastered there for as long as you wanted it as long as we were gonna pay for and it’s changed drastically example where it’s changing literally by the minute digital and it’s programmatic at this point so you can instead of buying one billboard in one location for a period of time you can take that same amount of money and you can spread it across billboards so you’re buying fractional attention so this has changed and and then I’m sure you’ve seen these digital billboards where they will change the ad every couple of seconds and the faster you’re going you know based on where you are on a highway or a local Road the faster it’ll change those ads so generally speaking and this is data from statistical status though generally speaking this shifts in digital versus traditional probably no big surprise here a lot of the attention and a lot of the time by the way this is time in minutes here this is the average time in minutes it’s shifting from traditional to digital now this data goes up through 2017 that’s the most that I have but I’m sure you would probably guess that it’s either intersected or or actually crossover at this point so digital in the last six years really gained a lot of ground on traditional it means that eyeballs attention are going to digital instead of traditional now the bellwether of traditional media is TV now there were the powerhouse they’ve been the powerhouse for 70 years since TV was introduced and this is the shift it by age group of TV watching time so if you look on the right hand side here clearly you can see there’s dips from 2012 but on the right hand side and hopefully you can see it in the back we have age groups so at the very bottom here we have the age group of 18 and 24 and then right below that in red is the change in percentage so for 18 to 24 year olds there’s a 39 percent decrease in the last four years now if you’re going after an older demographic 65 plus you’re in luck with TV that’s the place to be that’s actually grown by 2% yeah but if you’re going for anyone younger than 65 it’s a shrinking market all right now we don’t do a lot of TV we do just for one client they asked us to take over their TV ad spend that’s not our specialty we’re marketers by nature more than digital marketers but we’re gonna go where the eyeballs are and where it makes sense so if we got a client that was safe for senior living we’d probably recommend TV that’s a good place to be for everyone else maybe not so much so that that’s that’s us as an agency but let’s see what other agencies are doing so this is data that we’re going to show you from at age so how many people here subscribe to add age or add week they’re basically the same thing a couple all right so Ad Age is a used to be Advertising Age and it changed to add age I don’t know at some point years ago it’s a monthly magazine and then a daily email that’s all about agency news so this is marketing and advertising a lot of advertising what oh okay all right so what we’re gonna do is one at a time we’re gonna show trends of the change by category of media over the last well it’s really the last 18 years and then projecting forward by 2 all right so we’re gonna start with newspaper so any predictions about how newspaper has done worse than TV is right they’ve been hammered we’ve seen this locally at the virginian-pilot got purchased for thirty four million dollars out of the thirty four million dollars fourteen million was for real estate so that means that the business itself that had been around for a hundred and fifty three years was sold for twenty million dollars one hundred and fifty three years of hard work and it was sold for twenty million dollars now certainly there was a peak at some point and wealth was extracted along the way but it’s yeah it’s this kind of a shame that it was only 420 million dollars for the business and they’ve since merged with The Daily Press and they’ve unionized right and this is this is probably why they’ve lost eighty percent of their revenue in the last two decades that’s a huge hit it’s hard to survive that magazines also print obviously they’ve taken a hit so 63 percent decline in the last and over a 20-year span now I subscribed to magazines but every magazine that I subscribed to has an email newsletter as well so and most of the content is delivered through the newsletters the email newsletters not through the printed magazine and frankly the printed magazine usually has the same articles that are already read from the email newsletter radio so radio to put it in context radio was the king of media before TV emerged post-world War two around 1950 or so and they got hammered they got hammered when TV came out the whole industry just crowd well in the last 20 years or 20 and a 20 year span they’re going to lose almost 40 percent of their ad revenue it’s pretty surprising well just what it is all right next TV so TV any guesses crushing it all right the TV was crushing it I’m not exactly sure why there was a spike up but there’s a spike down and then overall it’s a negative 8% yeah [Music] debatable I’d have to drill and more honestly to figure it out if I had to guess it would be traditional but like I said in the very beginning the lines have blurred what is TV these days if I’m watching ABC on my phone which I think they have an app I know like History Channel they have an app is that TV well technically if it’s on a phone then it’s OTT over the top if I’m watching the exact same program say History Channel I said up on my phone but through my smart TV it’s called connected TV and if I’m watching that program through broadcast then its traditional TV yeah so I think you’d really have to drill into each of these lines if I had to guess there’s more data there for sure now I know for an Internet there is which we’re gonna do in a second so actually internet internet a little bit different story I was surprised by the number I’m not surprised by the trajectory but that’s obviously a huge number over 20 years so these other media are dropping dropping dropping and Internet is just gobbling it up so this is revenue this is revenue from marketers from brands brands are putting money into internet and taking it away from traditional that’s not saying that these are dead but that’s where the money is going that’s where the eyeballs are going all right the very last one out of home so out of home is any advertising that you see out of your home and not covered by something else it’s mostly visual so think billboards think posters if I were to walk out here and I see a cooler sign that’s out-of-home basically yeah all right how do we think out of home did billboards I’m surprised yes up this wall surprised by your answers but I’m also surprised by the data of 65 percent in a 20 year span that’s pretty impressive I have no idea why but it’s working now maybe it’s because with billboards you can inject digital and so you have options for programmatic buying it makes it a lot easier you can switch out copy you can switch out images you could probably even a be test billboards very very easily now so they’ve adapted very well with the times how am i doing Jake I’m good okay all right now within the internet I found this breakout this morning actually when I was going through my email newsletters this is from I think it came from ad week and it pointed to eMarketer so he market is the actual source but I was surprised that well somewhat surprised that mobile was so high that’s compared to say TV I mean certainly more than 50 definitely more than 50 percent of all web pages are viewed on a mobile device now versus a desktop so even when you’re talking about the internet there’s breakouts so Carl is asking about TV and the breakout there there’s details and in all of these numbers so the Internet one there’s a ton of details that we could get into but Mobile is just it’s just taken over so the Internet’s taken over mobile is taken over if you’re gonna build a website these days it really needs to be primarily for mobile and instead of saying something like mobile responsive it needs to be desktop responsive best desktops the minority whereas these mobile devices or the majority yeah so it’s a different way of thinking it needs to it has to work for the mobile and then it’s nice if it were works for desktop effectively right big change alright so takeaways I’ve really kind of touch on a lot of these the attention is certainly moving from traditional and into digital and mobile the attention people’s attentions their eyeballs are shifting the dollars are moving with it it’s going to continue and traditionals it’s getting hammered but what what I don’t know and what I actually I’ll get to it next is is what traditional can offer so my background has always been with the Internet I’m an internet guy and I’ve been doing that for years so my focus is always on the Internet what I really want to find out is more information about traditional so from the traditional people here I have a challenge for you so for next month instead of me standing up here I really like someone from TV print or radio to come up and provide some of their statistics so what are the things that we should be thinking about looking at especially since there’s a lot of digital marketers here from traditional marketing what would benefit us as an example last marketers anonymous a couple of the radio guys came up and they were telling us that if you advertise on a radio in addition to digital you get a 30% lift that was news to me but I haven’t seen the research yet so anyone who’s in TV radio newspaper magazines anything that would be classified as traditional whether you’re you do a full time or you are a marketer in it I’d love to hear your side of the story there has to be gold somewhere there right it’s not all this there’s more to the story exact as an example out of home why is it going up right I’m guessing I don’t know I’m not in the out-of-home marketing business so if you want to talk go to talk marketers and on comm we’d love to hear your story

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