Digital/Interactive Advertising Effective, Dominant
Forrester Research has released their forecast for advertising spending for the coming years. The projections show that digital and interactive ad spending will continue to increase and traditional advertising will decrease. As stated in AdAdge today by Josh Bernhoff
“The result is that digital, which will be about 12% of overall advertising spend in 2009, is likely to grow to about 21% in five years. Along the way overall advertising budgets won’t grow much.”
Coupled with the news that companies who interact heavily in the social media channels have a stronger financial performance, this means that digital must figure in your company’s communications plans.
“Companies that scored well in the study generally have dedicated teams, however small, active in the social media channels they utilize. The study found that the most successful teams evangelize social media across the entire organization to pull in a broad range of stakeholders. These companies view social media as an indispensable tool to help them achieve results, and their approach is conversational.”
It is no longer a question of are these valuable channels for communication but just how your company must be using them.
Photo credit: Flickr Creative Commons digital flower by A.Alhajey
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There is still a question of cause and effect. E.g., the referenced news story doesn't include companies like Exxon in its successful list, but it is the largest, most profitable company in the world, and it doesn't bother with social marketing. On the other hand, the article lists Starbucks at the top, but they're closing over 800 stores this year.
Social Media and Traditional Advertising
Marc-good comments. Did you see in a call that the Starbucks CEO credited McDonald's campaign with increased sales? Exxon should be focused in raising their reputation just as GE has been. Last year's huge profits at Exxon gave many people a bad taste in their mouths for oil and gas companies. The wise ones need to engage in social media.