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Home > Intel Briefs > 4 Critical Media Spend Insights All Marketers and Their Agencies Should Know

3 Critical Media Insights All Marketers and Their Agencies Should Know

SOURCE: Advertiser Perceptions Advertiser Intelligence Report

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INTRODUCTION:

The ferocity of the battle between different media for attracting ad dollars is reaching new heights, so it’s timely that this wave of our Advertiser Intelligence Report (AIR) describes how optimistic advertisers are feeling toward different types of media in terms of allocating future spend. It also looks at what drives advertiser decisions for each medium when making buying decisions.

1. Advertiser Optimism is Riding High Across All Media

A rising tide floats all boats. That is certainly the scenario f or how advertisers are feeling about media these days. For the first time in two years, the number of national advertisers planning to increase their ad spend as opposed to decreasing it, is on the rise. Advertisers are optimistic.

Six years ago, the greatest optimism among advertisers was for mobile, with a net +66 optimism index (net optimism = percent increasing spend minus percent decreasing spend) while national newspapers had the lowest optimism, a net -31 pessimism index.

Today, the difference is less than half that at 42 points: mobile seeing the highest optimism (+45) and national newspapers the lowest (+3). For every medium we track, optimism indices are in positive territory.

 

 

While much of the focus and airtime given to advertising has been around digital platforms and publishers, the tide seems to be turning in favor of all media. If advertiser sentiment remains positive and concerns about digital ad placement and measurement intensify, then more traditional media (including digital content) could be in for a very optimistic renaissance.

 

 

2. Reach the Right Audience at the Right Price

When it comes to driving buying decisions across all media, size matters. Large reach, composition and engagement of the target audience is essential. That’s especially true for digital media where audience reach, composition and engagement are together the greatest factor in determining where advertisers choose to spend their ad dollars. Audience carries significantly more weight than the next most important driver, cost/price. Rounding out the key drivers for digital is value for money spent, which over-indexes on importance, while optimization, marketing services and cross-media integration are less important for driving media buying decisions.

Like digital, for television buyers, audience is the main factor in driving media decisions by a wide margin in comparison to the next most crucial driver, cost/price. All the other criteria measured under-index in relation to driving buying decisions (i.e. targeting, value for money and ad results being the least important drivers followed by integration with content) demonstrating how important audience and the price paid for it has become in comparison to other factors.

For print (magazines and national newspapers) audience is also the leading factor responsible for driving intentions to advertise. Having a good mobile app to compliment the publication is what drives print advertising, as are marketing services. Turning to Radio — reach, composition and engagement of listeners are the key to tuning in national advertising dollars for radio. Delivering listeners at a high value and low cost is icing on the cake.

Regardless of medium, these days ad decisions are all about reaching the right audience for the right price. Those variables are two of more than 15 included in our analysis, revealing how even essential factors like content and results have been relegated to table stakes. That said, drivers shift over time. It will be interesting to see how ad decision drivers change in our future AIR reports.

 

 

3. Learn to Leverage Your Media Sellers’ Knowledge and Resources

Across all four media measured, the top three most important capabilities cited in regard to media sellers were that they are “Knowledgeable about the advertiser’s business, objectives, and challenges”. That they possess the “Strategic skill set to understand how to bring the right resources to the advertiser at the right time”. And, that they are “Knowledgeable about the marketplace”.

Put it all together and you get a potentially valuable partner, that is motivated by the advertising dollars spent with his/her media brand. Assuming the salesperson is truly knowledgeable and has the resources necessary to help ensure your advertising success, then taking steps to leverage that relationship would be a very smart decision.

Please Note: An index of 100 represents the average of all measured data points. If an index is greater than 100, then
that number represents an above average index for that criteria. An index below 100 represents a below average index.

 

 

TAKEAWAYS: Advertiser Optimism is Strong

1. Advertisers are optimistic. Sentiment is positive for every medium we tracked in this wave of AIR—Digital, Television, Print and Audio.

2. The right Audience at the right Price is what’s driving today’s media decisions. Essential factors like Content and Ad Results have been relegated to table stakes, at least for now.

3. Media sellers can be knowledgeable and deliver valuable resources. Savvy advertisers should learn how to leverage these partners who are motivated by the advertising they sell.

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