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Ad Execs See Rise In Mobile But Decline In Traditional Ad Spending

kpmg_logo.gifAccording to a recent poll by KPMG, media and advertising executives expect more than a quarter of media time and spending to move away from traditional channels. At the same time, they believe that mobile and social media advertising will be gaining momentum.

KPMG polled more than 200 media, marketing and advertising executives in collaboration with AlwaysOn, the venture capital new media organization. When queried about major changes in the industry today, 49 percent of respondents indicated that the pullback of advertising dollars is the most disruptive force in media today, followed closely by mobile devices becoming personal computers (40 percent).

Some of the other key results of the survey include:

  • 75 percent of executives predict that advertisers will move more than a quarter of media time and spending away from traditional channels in the next five years, while social networks and mobile marketing are expected to see increased activity.
  • 47 percent indicated that the biggest lesson learned from President Obama’s use of social media while campaigning is that social networks can powerfully grab mindshare in society at large.
  • Although the power of social media advertising is clearly expected to grow in the future, 61 percent of executives indicate that fewer than 30 percent of ad agencies have a plan in place to leverage the medium for their clients.
  • The greatest marketing opportunity for mobile is location-based advertising, according to 48 percent of respondent to the KPMG survey.

“Social networking and mobile marketing are just two of the relatively new media forms to enter the marketing mix, but they are already showing just how integral they will be in the near future,” said Brian Hughes, KPMG Partner and Co-Leader of the Venture Capital Practice. “Not only will these new forms of media continue to see increased utilization by marketers and advertisers in the near future, but they will continue to capture increasing attention from the investment community.”

Read the full KPMG press release
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