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Spending is Shifting out of Traditional Media
There is a change, taking place in the world of advertising. This evolution is characterized not just by how advertisers reach buyers, but how we as a society communicate. Technology has become both the friend and the foe to marketers worldwide. Channel fragmentation, smart phone usage and ubiquitous broadband coverage have dispersed and redefined the media landscape. These changes are occurring in an environment where media budgets are challenged by the economic downturn and marketers continue to push for more measureable results and greater accountability.
The result is that media spending is shifting out of traditional media into new digital channels. This is fueling the growth of internet and place-based out-of-home media while fragmenting television audiences and eroding traditional newspaper readership.
Internet based digital media is the fastest growing medium followed by digital out-of-home. Consulting and research group Outsell surveyed over 1,000 US advertisers and marketers in December 2009, finding that $119.6 billion, or 32.5% of the planned 2010 U.S. ad spending of $368 billion, is destined for digital media. The 30.3% going to print advertising is lower by more than $8 billion. The most recent estimates show that even in this tough economic climate, digital remains the one area of aggressive budgetary increases. According to a new report by digital researcher eMarketer online advertising spending will surge 10.8 percent in 2010 to $25.1 billion.
At the same time, the PQ Mediav 2010 forecast calls for digital out-of-home to grow 6.2 percent to $2.62 billion. Within DOOH, transit advertising is finding a strong new role. As fuel becomes cost prohibitive transit ridership continues to increase. This increased ridership and new digital delivery technologies have positioned transit advertising as a growth driver in the new digital marketplace. New digital technology and an increased focus on professionalism is providing solutions to many of the issues that have long kept transit advertising as a secondary/support medium and moving it to the frontline.
In a 2009 Federal Transit Administration survey of US based marketers and media buyers, digital is recognized as a growing contributor to future media buys, as 61% of respondents stated that platform/station based digital media would be part of their recommendations moving forward and 58% said that on-board systems would be part of their recommendations moving forward. Additionally, 77% of media buyers strongly agree that they have had a positive experience with transit advertising.
A wave of new media technology is washing over Denmark. Smart phones, public space Wi-Fi and digital place based transit media are presence and growing in the on-line, mobile and public arenas. With more and more place-based digital media, advertisers can now reach more and more consumers at critical touch points throughout the day. However, the challenge moving forward does not rest with the means of reaching consumers; the real success of digital media will be determined by the quality of the creative content and how effectively the messages capture the attention and loyalty of the new digital consumer?
We have the medium...We need the message
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Spending is Shifting out of Traditional Media