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Traffic Cost Inflation, Coming to a Marketing Budget Near You

Posted By Bryan Eisenberg On March 31, 2006 @ 12:54 pm In Advertising,Marketing 2.0 / Web 2.0,Marketing Rants,ROI Marketing,Search Engine Marketing | 4 Comments

A large part of the marketing battle has traditionally been fought over traffic versus impressions. The more people exposed to the marketing, the better. So to improve marketing results, marketers typically bought more traffic.

In an age of media fragmentation and customer control, this approach works less well each passing minute. It simply costs more [1] to reach fewer people.

Tomorrow’s successful marketers must find a way to do more with less traffic.

TV Packs Less Punch

According to a Forrester poll conducted in partnership with the Association of National Advertisers [2] (ANA), television, mass media’s golden child, is losing its luster. Some even say their TV ads are tanking [3].

Of 133 advertisers who control over $20 billion in advertising, 78 percent feel TV advertising’s potency has declined since 2004. When DVR penetration gets above 30 million households, 24 percent will cut their TV ad budgets at least 25 percent. They’ll reallocate that money to online and other channels. More than three-quarters will invest more in Web advertising; almost 70 percent will spend on SEM (define [4]).

Offline, media fragmentation is taking its toll. Though demand drives price, mass media ad prices are unlikely to decrease. It costs the same to operate a TV station, cable outlets, radio stations, and magazines, regardless of audience size.

Continue reading my column at ClickZ… [5]

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URL to article: http://www.grokdotcom.com/2006/03/31/traffic-cost-inflation-coming-to-a-marketing-budget-near-you/

URLs in this post:

[1] costs more: http://www.clickz.com/experts/crm/traffic/article.php/3518011

[2] Association of National Advertisers: http://www.ana.net/

[3] TV ads are tanking: http://www.clickz.com/news/article.php/3593536

[4] define: http://www.webopedia.com/TERM/S/SEM.html

[5] Continue reading my column at ClickZ… : http://www.clickz.com/showPage.html?page=3595206

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