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Pullback of Ad Dollars and Mobile Devices Seen as Most Disruptive Forces in Media Today

Posted by TeamITI on February 10, 2009


mobilemediaMedia and advertising execs expect more than a quarter of media time and spending to move away from traditional channels, while mobile and social media advertising seen gaining steam

NEW YORK, Feb. 5 /PRNewswire/ — Media and advertising professionals say the pullback of ad dollars and mobile devices becoming personal computers are the most disruptive forces in media today, according to a recent survey by KPMG LLP, the U.S. audit, tax and advisory firm. With media time and spending seen moving away from traditional channels, attention to social media and mobile consumption is expected to increase.

In polling more than 200 media, marketing and advertising executives, KPMG found that 49 percent of respondents indicated that the pullback of advertising dollars is the most disruptive force in media today, followed closely by mobile devices becoming personal computers (40 percent). KPMG conducted the survey in collaboration with AlwaysOn, the venture capital new media organization.

The KPMG survey also found that some 75 percent of executives predict that advertisers will move more than a quarter of media time and spending away from traditional channels in the next five years, while social networks and mobile marketing are expected to see increased activity. In fact, 47 percent of respondents indicate that the biggest lesson learned from President Obama’s use of social media while campaigning is that social networks can powerfully grab mindshare in society at large. While the marketing and branding power of social networking is expected to be increasingly harnessed in the future, 61 percent of executives indicate that fewer than 30 percent of ad agencies have a plan in place to leverage the medium for their clients.

“The rapid evolution of new media channels, coupled with the economy’s downward impact on marketing and advertising budgets, is creating opportunities for brand execs to develop a new formula in reaching consumers,” said Brian Hughes, KPMG Partner based in Philadelphia and Co-Leader of the Venture Capital Practice. “These execs realize that they must properly blend all forms of media at their disposal, including the growing social media and mobile device platforms.”

With regard to mobile marketing, KPMG found that 65 percent of executives say media companies currently adapt less than a quarter of their content for mobile consumption, while 27 percent believe the current content adaptation rate is between 26 and 50 percent. However, 87 percent of respondents say media companies will move more content for mobile consumption in the next two years.

The greatest marketing opportunity for mobile is location-based advertising, according to 48 percent of respondent to the KPMG survey. Games and video are also seen as opportunities, each receiving 14 percent of the vote. The majority of investment in mobile applications is expected to come from venture capital, and the monetization of those applications is expected to come by way of advertising.

“Social networking and mobile marketing are just two of the relatively new media forms to enter the marketing mix, but they are already showing just how integral they will be in the near future,” continued KPMG’s Hughes. “Not only will these new forms of media continue to see increased utilization by marketers and advertisers in the near future, but they will continue to capture increasing attention from the investment community.”

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2 Responses to “Pullback of Ad Dollars and Mobile Devices Seen as Most Disruptive Forces in Media Today”

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