Tuesday, October 7, 2014

Mobile is the Next Big Venue for Advertising, but Shift from TV to Online is Bigger, Near Term

When looking for key opportunities or threats in any business, it always is useful to follow the money.

Daryl Simm, Omnicom Group CEO of media operations, manages an operation representing  $54.4 billion in advertising spending globally.

So it is noteworthy that Omnicom Group has recently been advising its clients to move 10 percent to 25 percent of their TV advertising commitments to online video.

If clients follow that advice, the traditional gap between attention and advertising spend will start to close. In 2012, for example, advertising spend on television and print exceeded the audience those channels represented.

Mobile, which represented 12 percent of the actual audience, got just about three percent of the advertising. Internet audiences, representing 26 percent of the time spent with media, got about 22 percent of the ad spending.

To be sure, the gap between audience and ad spending has narrowed considerably over the past decade. The next big shift will be to mobile channels, given the wide gap between audience and advertising.

Over the long term, advertising will follow the audiences. Online audiences are growing. So are mobile audiences. TV, radio and print are shrinking. The money will follow.

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