Why are Marketers and Agencies So Timid? - Steve Yanovsky

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Cover image for  article: Why are Marketers and Agencies So Timid?  - Steve Yanovsky

The record setting 2011 Television Upfront, with its low double digit increases, is winding down and many of the cable networks, and broadcast networks, enjoyed wonderful selling seasons. But, what about online spending? It isn't even rising as fast as its traffic is rising.

According to Randall Rothenberg of the IAB, "…consumers spend 28% of their time on the web, [but] digital advertising comprises only about 12% of all advertising". …"Consumers are voting with their time, with their passions, and moving into a media space where marketers are simply uncomfortable following them."

I agree with this observation. Marketers and their agencies seem to be too cautious when it comes to digital advertising. Moving dollars into this medium does not make you a pioneer anymore. If we were having this discussion in 2003 or even 2005, I would say that the advertisers who made the initial investments were betting on the opportunities represented by this medium.

But today, the medium has proven itself. Digital video in particular will provide advertisers with much more data than they will receive from the billions of dollars recently spent on broadcast and cable television. In a recent survey by the IAB, digital marketers say consumers show a higher engagement rate with online video. Also, digital is more trackable and targetable, and of course, the production costs are much lower.

But, some in our industry are trapped by their own inertia, and have not embraced this medium. They are reluctant to make spending commitments commensurate with the growth of the medium, for reasons that are curious. This reluctance exists despite powerful information to help them jump off the diving board. Data presented at the OMMA Video Conference, by comScore, earlier this year, stated that there are180 million visitors to the web that watch videos per month. That is 85% of all Internet consumers. They went on to say that "regular tv networks' customers viewing video online rose to 8% in 2010".

So what will it take for senior agency and marketer decision makers to follow their consumers, and have a more aggressive presence online? I know that standardization is one thing. Agreed upon metrics is another. Click through rates, CTR's, are a poor measure of success. But, there has to be recognition that this migration to online viewing, and online consumption of information, is a trend that will not reverse itself. This medium represents the opportunity for advertisers to get as close to true targeted marketing as has existed.

Steve Yanovsky is a partner at Customer Focused Solutions specializing in marketing and marcom for clients in media, entertainment and online advertising, and can be reached at syanovsky@optonline.net

Steve Yanovsky is a senior partner at Brand Strategies, LLC and can be reached at syanovsky@brandstrategiesllc.com.

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