We’re at a critical juncture in media history, one that is redefining the landscape so quickly that we’ve obviously reached a tipping point. We’ve surveyed 7,228 SMBs and it’s difficult to examine the marketing intentions of that many local businesses and not arrive at the conclusion that a tipping point has been reached. The pace of change is accelerating. Anything involving traditional media channels is now considered expensive, difficult and risky; anything involving digital is seen as inexpensive, easy and low-risk.
When it comes to automated buying and selling, the Internet reigns supreme. So it’s inevitable that advertising will also one day become automated. And while that day is not quite here, it’s coming rapidly. The programmatic-advertising iceberg showed its tip last year, as 4.7% of all locally placed digital advertising was done through these automated buying-and-selling networks. Although Publishers are skeptical it won’t halt the growth of programmatic advertising. This year the share will grow to 10%, which means that $5 billion of digital ad-buying at the local level will be handled by computerized bidding. This report details programmatic advertising and the flow of advertising dollars at the local level.
Real estate agents and brokers, among the first to adapt to digital media 20 years ago, may have discovered the digital saturation point. In 2015, while other types of advertisers are increasing digital budgets, agents and brokers will be scaling back. Although a small amount (-2%) it indicates that they may have reached the optimal ratio of digital to non-digital expenditures. Our annual review of advertising and marketing trends takes a deep dive into how this category is changing over the next 5 years and how habits of millennials are creating a boom in real estate advertising.
If local advertising were a train, digital would be its locomotive, first-class passenger car and dining car. It continues to be responsible for nearly all growth in local advertising, barreling along at an accelerated rate of 40% last year and forecast rate of 42% this year. In this report, we’re examining digital advertising. We separate that into four basic formats: display, streaming, email and paid search. Display is further broken out into targeted and static display/ROS, and streaming is bro ken out between video and audio-only commercials.
In our fourth (and largest) survey of local ad-sales manager the digital divide is clear – 51% of digital media companies have at least one digital only AE on staff. Companies that employ digital-only sales reps — even one or two — tend to have far more digital revenue than those who don’t. There’s overwhelming evidence that a rep who sells two competing products always winds up favoring one. And that could be bad news in both directions: For a media company focusing its traditional-media reps too much on digital sales ... or vice-versa.