Digital outpaces traditional media globally

by Hayley Pinkerfield, Revolution UK 27-Jun-07, 11:20

LONDON - Digital investment is the single biggest driver of adspend growth globally, according to a forecast by media agency Carat.

Overall patterns of growth in 2007 are forecast to be relatively consistent with 2006. Global adspend growth is expected to be 5.8 per cent, slightly down on last year's 5.9 per cent. Following digital, out-of-home and cinema are the next two fastest-growing media.

The forecast for UK adspend growth in 2007 is 4.1 per cent, with online accounting for almost all of this. Carat states that the UK is "one of the most sophisticated and developed online advertising economies", with display accounting for just one quarter of total investment. In the US, online media remains the fastest growing space. Internet services account for nearly eight per cent of spend, while US households spend approximately 15 per cent of their media time online.

UK digital television services are forecast to grow well throughout the year, while total spend on TV is likely to be flat. The outlook for publishing is continued investment in online services to compensate for declining hard copy sales.

Maniardo de Nardis, CEO of Aegis Media, said: "2007 is an exciting moment in advertising: media, entertainment and consumer behaviour are evolving on a daily basis. But while digital continues to outpace all other media in every corner of the world, rumours of the death of so-called ‘old media' are exaggerated. In some part of the world, demand remains vibrant. At the same time, we are watching a variety of new hardware, formats and services with interest."

Comments

DECLAN GANE - 27/06/2007

Of all other media at brand owners’ fingertips, it is event marketing that is not suffering ill effects from the digital revolution. In fact the evidence shows that the events sector is being thrown to the fore of brand campaigns, in part because of its symbiotic relationship with online. The second coming of digital media has taken the form of a tsunami, sucking the traditional mass media sectors under its pull. This isn’t just because today’s consumer wants to “consume” what they want, when it suits, but also because TV, radio, magazines, et al, can all be replicated online. Ironically, it is event marketing, the oldest kid on the block that is riding the digital wave. It’s not just that event marketing is complementary to digital, but that the two have so much in common, to the exclusion of the traditional mass-market media. The key characteristic of both digital and events is “pull” rather than “push” media. Unlike the interruptive push techniques of broadcast, direct mail and other media forms, pull, or permission marketing, is exclusive to digital and live marketing formats. In 2007 “engagement” has taken “centre stage” for marketers and brand managers in our increasingly fragmented world, where consumers need to be able to make sense of the messages they are bombarded with. Taking a brand into a live, face-to-face environment allows the consumer to build a relationship with that brand beyond what is achievable online, or in any other media form. Where communities and relationships can be built online they can be consummated face-to-face. So, event marketing, which for so long has not even been regarded as a mainstream marketing medium, now joins digital on the stage as a “now media” star. Declan Gane www.eventsindustryalliance.com