A new report from research firm Standard Media Index shows that digital advertising is far outpacing other forms of media in companies’ marketing mix these days. In fact, total digital advertising bookings – including online, mobile and in apps – increased by 21% in April. The growth in digital was driven mostly by increases of ads sold on social media networks (70% growth), online video (44% growth), and online radio (32%).
According to the Standard Media report, the digital gains are being made mostly at the expense of television. As an advertising medium, the report says that television is suffering through a period of decreases. Spending on cable TV ads fell 7% in April, while broadcast spending dropped 8%. As far as industries are concerned, Standard Media reports that food, dairy and produce advertisers spent 14% less on TV ads in the month, retailers spent 12% less, and financial services spent 4% less, while each of those categories recorded double-digit growth in digital.
A separate report recently released by Forbes Insights and Quantcast underscores why marketers are increasingly turning to digital media as opposed to traditional outlets for their advertising efforts. “Reaching the Right Audience: How Brands Are Using Targeting in Digital Advertising” shows that companies are beginning to favor digital marketing because of its ability to measure the effectiveness of campaigns and because it allows them to target their efforts more closely. Ultimately, the report says, digital advertising is making campaigns that much more effective and efficient.
“This report underlines the importance of a strong digital presence,” said Bruce Rogers, chief insights officer and head of the CMO Practice for Forbes Media. “Digital offers advantages over traditional media when it comes to precise targeting and measurability.”
The Standard Media Index report is based on 80% of the national U.S. agency spending from the booking systems of five of the six global media holding groups.