Budget allocation favors online advertising over traditional
Posted by Manuela Barreto @ February 19th, 2009 in Marketing Analysis
The new IPSOS Marketing and Media survey presented by MediaPost provides a certain breather for the new media industry as it reviews some specifics on what the online ad spending budget allocation looks like for 2009.
According to Martin Sorrell, WPP’s CEO and advertising guru, in an recent interview for one of Italy’s most read journals, Corriere della Sera, the first half of 2009 will be one of the hardest as traditional media will see the worst declines particularly newspapers, radio and TV specially in USA and Europe.
Perhaps the most comforting remark he made throughout the interview was that he didn’t believe the economic recession would simulate that of an ‘Apocalypse Now.’
However, the online shows a strong performance for 2009 as email, search and social media show the highest expected change in budget allocation with an increase of 58.5%, 54.4% and 43.9% respectively while offline media is expected to reduce at a 34.9%.
As part of the selected advertising goals for 2009 the highest degree of importance went to new customer acquisition, followed by increased customer retention and increased brand favorability- all of which could be effectively attainable through the implementation of the right online strategies and social media as a marketing/networking tool.
Towards the end of the interview, Sorrell switched to a more optimistic view of what the Internet landscape will be like post-crisis affirming it will increase its market share from 12% to 20-25%.
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