Television has been toppled.
Since the days of Mad Men, television advertising had grown into a behemoth. If you wanted to get a brand in front of the American people, you wrote a catchy jingle, shot a great commercial and put it on TV. If you wanted to be a superstar agency, you could make it with 30 seconds on the Super Bowl.
But it looks like those days are done. Digital has deflated the power of TV.
Last year marked the first time that digital advertising spend topped total advertising revenue on TV. Thanks to a 21 percent jump in 2017, it looks that that trend isn’t going away, according to the experts.
With digital advertising spend surpassing TV it has opened up opportunities for every business – huge, big and small – to spend money more strategically. And the best place we think, of course, is online.
“I’m sure TV advertising seemed unstoppable at some point, like a Goliath,” said Allie Carrick, Smirk New Media president and managing partner. “Internet advances slew the giant and there’s no going back. Advertisers are finally ready to invest their money where the innovation, conversions and accountability are happening — digital mediums.”
Because digital marketing is our wheelhouse, the 36 percent increase in spending on social media ads shows the importance of brands participating in – and targeting – social media conversations. Social media accounts for around a quarter of all online ad revenue.
What makes digital and social so dynamic for advertisers is how frequently it changes and the data. There’s been a lot of buzz about how much information the platforms have on their users, but that data is what makes advertising so effective.
“Digital media’s ability to deliver actionable data, audience information and real-time feedback give it such an advantage over other advertising platforms,” said Mike Koehler, Smirk founder and chief strategist. “We can target new moms, an Edmond subdivision or the most loyal Thunder fans in Poteau thanks to digital ad platforms. This means real data and ROI for advertisers that traditional advertising mediums lacked.”
It all comes down to strategy, Smirk’s favorite word. Since there are so many moving parts in what works in digital – both on the advertising and content side – being nimble in planning campaigns and audiences is key. But it works, so the revenue growth is that.
And since it’s going to keep working, there is plenty more to do.