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Measurement Is Key Hurdle to Growing Ad Spend on Emerging Media

calipers.gifGundersen Partners has completed a study among 377 senior marketing executives on new and emerging media. Only 55% of these currently allocate more than 10% of their budget to new media, although this will rise to 80%. Lack of information is the most widely cited reason for this gap.

The survey found that the spending mix will shift strongly in favor of new media in the future as follows:
• 20% of companies allocating less than 10% of their budget to new media,
• 52% will spend from 10% to 30%, and
• 28% will spend over 30%.

The study defined traditional media as television, print, radio, direct mail and outdoor versus new and emerging media, which includes online and mobile.

Regarding the speed of this change, 35% said they would reach their ideal spending mix within one year, and 80% said they would achieve their goal within 2 years.

Information is one of the key barriers to this change.
• nearly 40% of respondents cited insufficient knowledge as a barrier,
• 33% felt they did not have enough time to evaluate the options.

Additionally, according to the study, agencies did not score well in meeting advertiser information needs for “educating and exposing clients to new/emerging media”.

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24.11.2007   
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