Marketers More Bullish Than Agencies on Traditional Media Spend

A greater proportion of marketers than agencies believe that spending on traditional media such as direct mail (25% vs. 17%), print (22% vs. 8%), and radio (18% vs. 3%) will increase this year as compared to 2011, with the proportions expecting spend to increase on TV relatively on par, according to a survey released in January 2012 by RSW/US. And although the survey shows that increases in digital media spending will outpace that of traditional media, marketers’ planned increases do not appear to match agency expectations: a higher proportion of agencies than marketers expect spending to increase in social media (89% vs. 63%), mobile (72% vs. 46%), SEO (66% vs. 48%), and banner advertising (55% vs. 30%).

According to December 2011 figures from Kantar Media, outdoor (3.2%), TV (3.2%), and radio (1.1%) led all media in Q3 2011 year-over-year ad spend gains, while internet and newspaper ad spending declined 2.9% and 3.7%, respectively.

Brian Rich of Forbes thinks so:

"I would argue that with an appropriate capital structure, conventional media can take advantage of its brand, content and reach to dramatically expand into digital. Many of the existing “Web 2.0" business models are even weaker, even in the long term, than those of traditional media. Online advertising prices are extremely low, particularly for non-name brand Internet properties. Most Internet companies are alive only because they are propped up by cheap venture capital financing that is in the process of drying up. On a straight up basis, a traditional media company with a strong brand and digital product should be able to out-compete all but the best Internet-only companies. In the past, traditional media companies were weak online out of fear of cannibalizing the offline revenue and cash flow that sustained their valuations and debt loads. They will soon have a great deal less to lose, likely under fresh ownership and management. It's time for traditional media to rise up and exact its revenge."

Steve Ballmer, CEO of Microsoft, speaking at the Cannes Lions International Advertising Festival, predicted that within 10 years all content will be digital. Read the Guardian story here. 

"All content consumed will be digital, we can [only] debate if that may be in one, two, five or 10 years," added Ballmer. "There won't be [only traditional] newspapers, magazines and TV programmes. There won't be [only] personal, social communications offline and separate. In 10 years it will all be online. Static content won't cut it in the future,"

Neither will search engines that crash all the time and operating systems with lots of bugs- does that mean Microsoft won't be around in 10 years, either?

If you are like me and you find Steve Ballmer tough to take - time to reassess your position. The geniuses at the Cannes Lions International Advertising Festival named him "media person of the year." So I guess I was wrong about him all this time.

Now as long as Microsoft's Internet Explorer cooperates (it is 50-50 but I am feeling lucky) I will post this.