Advertising Market Stays Strong, But Constantly Changing

Advertising will never go away; it will die in some markets, change in others, but it will always have a place in a world filled with active consumers. The world of media has been trending away from some of the staple forms of advertising in recent decades, like newspaper, magazine and even television advertising. Even despite this, American media spending on advertising dollars rose 6% in September 2015 compared to September 2014, according to Standard Media Index (which tracks 80% of all the U.S. media spending through billing systems tied to national media agencies). 

As you might expect to see, digital media reported a major gain, up 29% from the same month last year. This comes as no surprise because advertising will always shift to where people are looking. As more and more people use the Internet every day in their busy lives, advertising online will need to be more and more creative to break through all the noise

Surprisingly, advertisement in newspapers was up 18% compared to the same month last year, which goes to show that even this dying medium still has a pulse in our culture. While younger generations read news on their devices, newspapers still have a place in our world. But within the same world, magazine advertisements were down 11% this month compared to last year. With magazine subscriptions plummeting faster than newspaper readership, it's predictable that advertising dollars would follow suit. 

Radio advertising dollars were also down 3% compared to last September. 

Even with the start of the television season, where many networks try out new shows and debut fan favorites, which brings a large spike in viewership, TV advertising dollars were also down 4% this September. Cable, broadcast TV and spot TV all showed declining numbers compared to last year. With advancing technology, viewers are watching their favorite shows in a myriad of different ways.

Many consumers have DVR systems, which allows them to record shows and skip the commercials altogether. This means ads are completely being missed by target audiences, which means the ad industry has had to figure out new ways to reach those audience members. 

Overall, the SMI reports a 9% improvement in the total ad market. While the digital ad market continues to grow and innovate, other, more dated advertising streams are in decline. But as the numbers prove, having a digital footprint for your business or product is more important than ever.

Most think of digital advertising simply being ads before a YouTube video; but that is not always the case, as digital advertising can be a variety of videos posted on a business website. It's crucial that your target audiences have a profile video or mission statement to view when visiting your site. These types of videos are the ones that are breaking through the clutter, because your audience is actively seeking more information about your company. It's important to have a professional style video to not only showcase your business or product, but to give the audience the impression that your business is a respectable establishment. 

Posted to Head in the Clouds - thoughts, ideas, and trends from the team at Cloud Media – a front-end marketing and media production company with offices in Minneapolis, Doha, and Dubai.

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