Mobile, Mobile, Mobile
A recent study released by KPMG LLP, an audit, tax and advisory company, in conjunction with the venture capital new media organization AlwaysOn, highlighted the growing importance of the mobile realm.
In a survey of more than 200 media, marketing and advertising executives, the study, titled, “Pullback of Ad Dollars and Mobile Devices Seen as Most Disruptive Forces in Media Today, KPMG Study Finds,” found that 49 percent of respondents said the pullback of advertising dollars was the most disruptive force in media today.
Mobile devices becoming personal computers was the second most disruptive force according to the executives, with a 40 percent response.
The weakening of old media at the hands of bankruptcies and closures was third, garnering a 38 percent response.
Internet penetration opening up global markets received a 25 percent response, the inability of social networks to monetize received an 18 percent response, and the potential for location-targeted content, advertising and marketing on smartphones received a 17 percent response.
About 75 percent of respondents foresee advertisers moving more than a quarter of their media time away from traditional media over the course of the next five years.
This reflects a noticeable drop from the 90 percent of executives who said the same last year.
As expected, social networking’s power to enable marketing and branding campaigns is expected to see more attention, though 61 percent of respondents said that less than 30 percent of advertising agencies have plans for using the channel for these purposes.
“These execs realize that they must properly blend all forms of media at their disposal, including the growing social media and mobile device platforms,” said Brian Hughes, a KPMG partner and co-leader of the Venture Capital Practice in a statement.
While mobile marketing is generally seen as a hugely important area that needs attention, 65 percent of respondents said less than a quarter of media companies have adapted their content for media consumption. Twenty-seven percent said between 26 and 50 percent of media companies have done so.
Eighty-seven percent expect media companies to push more content for mobile consumption in the next two years.
Location-based advertising was viewed as the biggest opportunity, receiving a 48 percent response, followed by games and video, each receiving 14 percent.
Google Latitude, unveiled last Wednesday, created loads of buzz last week, partly because of the potential for the company to dig into location-based advertising through the software.
While many were quick to dub Latitude king of everything, it’s unlikely to gain enough traction to be significant anytime soon.
Executives surveyed by KPMG still see search as the most effective advertising channel, though they were split concerning whether CPM rates would rise or fall during the next two years.
According to recent figures released by eMarketer, search advertising spending growth in the U.S. is expected to be 14.9 percent, a decline from 21.4 percent in 2008 and 29.5 percent in 2007.
Growth is expected to slow even further to 13.0 percent in 2010 and 12.1 percent in 2011, but is expected to grow 13.7 percent in 2012, according to eMarketer.
http://www.us.kpmg.com/news/index.asp?cid=2986
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=99827
http://www.emarketer.com/Article.aspx?id=1006902
