OTT and revived TV membership models were among the highlights of a local digital advertising conference that just managed to sneak in under the coronavirus wire.
Gordon Borrell says that in addition to that decrease, digital was up $1.3 billion. In 2017, he says, core TV spending will be flat, with digital outselling traditional media. What stations need to do, he advises, is show advertisers how broadcast spend can help drive traffic to their website or Facebook page. “When they begin to put the two together — that broadcast advertising drives digital traffic better than anything else, and it does — than you’re going to see more … advertising.”
Gordon Borrell: “The marketing world has changed. Advertisers are more media savvy than they were just a decade ago. They know the power of each medium and see right through anyone who doesn’t. Rather than downplaying the effectiveness of digital advertising, television’s message should be: Look at the power of digital media and how TV magnifies it.”
Media analyst Gordon Borrell says local TV is most vulnerable to disruption with its advertising, which faces growing competition from digital interactivity and falling radio and newspaper prices. In an exclusive interview with NetNewsCheck Editor Michael Depp, Borrell also sees a limited revenue upshot to distributed publishing, a wariness for micropayments in the U.S. and shifting habits in local search that publishers should be tracking.
Could beacons, the type of hardware that transmits Bluetooth signals, become a revenue-generating force for media companies as soon as next year? Some experts think so, accelerating a forecast from media analyst Gordon Borrell that the retail industry technology would be among the top local advertising trends in the next decade. Erica Sweeney talks with industry experts who outline the opportunities for media companies to be involved.
Most local media companies will choose not to offer digital agency services because investment in them dents profit margins, says Borrell Associates CEO Gordon Borrell, but companies that make the investment will find themselves generating significantly more revenue than their more staid competitors and will grab market share from declining yellow page and direct mail industries.
Social and mobile media can be lovable and annoying, and it’s the annoying part that holds the most opportunity, says Borrell Associates CEO Gordon Borrell. Methods of how to capitalize on social and mobile will be laid out the firm’s Social+Mobile Show Me The Money conference this month.
Gordon Borrell: “The money being plowed into promotions isn’t entirely coming from trimmed-down advertising budgets. It’s also coming from things like slimmer profit margins (taken through steeper discounting), the salaries of former workers who used to handle marketing tasks, and from agency fees, printing budgets and postage.”
Local online ad spending is not abating and TV is well-positioned to take advantage of the trend and grow their share of the market. There’s “something interesting that’s happening as the economy comes back and lots of advertisers are buying these digital products,” Gordon Borrell, CEO of Borrell Associates, said during a TVB webinar.
Local broadcasters’ $1.8 billion in local online ad revenue this year might represent only the visible portion of the Internet iceberg. A TVB survey found that 61% of the local businesses surveyed said they expected their expenditures on digital media to grow in 2011. The survey identified a large opportunity for local TV broadcasters to tap into that vein: 58% of the respondents said they considered their TV rep a good source of information for digital opportunities, while 71% expressed confidence that the rep was a good adviser on media buys.
Automakers and dealerships have hit the brakes on auto spending this year, after roaring back in 2010 following a dismal 2009. But the category will still see healthy gains in 2011. Gordon Borrell, CEO of Borrell Associates, talks about where auto advertising is growing, why newspapers are included in that lot, and what’s driving the shift to online spending.