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Digital Surpasses TV in Advertising Spending

The power couple of the year award goes to public relations and digital marketing. In today’s technology and internet-driven age, these two disciplines drive each other…
January 29, 2018 | Danielle Nelson

Every day we drive down the highway and see dozens of local brands spending thousands of dollars a month on billboards. Although we strongly believe in the power of traditional marketing (billboards, radio, and so forth) and integrated marketing (digital marketing that intentionally intertwines with traditional marketing), we question local brands that are spending money exclusively on traditional.

In a world where 72% of adults are on Facebook, does it really make sense to spend 100 percent of your marketing budget on a shotgun-style approach? Simply put, we believe that smaller brands who fail to shift marketing dollars to digital will (with a few exceptions) fail to compete in a world where we can target so precisely with an inexpensive digital ad.

From the Grand Rapids Business Journal, December 22, 2017.

Digital advertising spending surpassed television ad spending this year.

According to Magna, a global research outlet for media firm IPG Mediabrands, digital ad sales grew to $209 billion, up from $178 billion last year.

Television, which enjoyed relative success last year due to the Olympics, U.S. presidential election and other events, brought in $186 billion in 2016. This year, television ad sales only brought in $178 billion. Traditional (radio, television and print) advertising sales declined 3 percent to $300 billion this year, which was the heaviest decline recorded.

Print and radio advertisement sales decreased by 11 percent and 1 percent, respectively, this year.

A “more dynamic ad market” in China, Brazil and Russia contributed to Magna’s decision to update its global ad forecast from June, but the U.S. remained mostly unchanged, said Vincent Letang, executive vice president and director of global forecasting at Magna.

In total, Magna predicts the U.S. ad revenue will grow by 3.9 percent for the year.

Read the rest on the Grand Rapids Business Journal website.