It simply makes good economic sense to rebalance spending away from digital clutter. This performance differential is amplified as costs of online advertising have increased, especially when accounting for impression, click, and conversion fraud - whereas the costs of traditional media have fallen. Indeed, research by Ebiquity suggests that traditional media channels - led by TV, radio, and print - outperform digital channels in terms of reach, attention, and engagement relative to costs. MarketingSherpa reports that more than half of consumers often or always watch traditional television advertisements and read print advertisements that they receive in the mail from companies they are satisfied with. Traditional ads, on the other hand, are experiencing increased engagement. As a result, marketers are looking for a way to cut through the noise. For example, a HubSpot survey found that 57% of participants disliked ads that played before a video and 43% didn’t even watch them. They report frustration and negative brand association with digital advertising clutter that prevents them from reading an article, watching a video, or browsing a website. Breaking through the digital clutter.Īs consumers are spending most of their waking hours online, it seems they are becoming increasingly numb to conventional digital advertising and engagement.
#The effectiveness of direct mail advertising suffers from drivers
So, why is traditional advertising on the rise, and will the trend continue? We see seven drivers behind the shift. Further, and somewhat ironically, companies that earn 100% of their sales through the internet are leading this inflection - predicting an 11.7% increase in traditional advertising spending over the next 12 months. In contrast to the historical trend, in August 2021 and February 2022, marketers predicted that traditional advertising spending would increase by 1.4% and 2.9%, respectively.Ĭonsumer-facing companies are leading the shift, with B2C service companies predicting the largest increase in traditional advertising spending (+10.2%), followed by B2C product companies (+4.9%). However, recent evidence suggests that a shift is underway. According to data from the 28th Edition of The CMO Survey, on average, marketers reported an annual decrease in traditional advertising spending of -1.4% between February 20, compared to an annual increase of 7.8% for overall marketing budgets during this same period. In turn, marketers pivoted investments from television, radio, newspaper, events, and outdoor advertising to digital channels, from TikTok to TechTarget.įor the last decade, marketers have consistently predicted that their traditional advertising spending would decline. As consumers have shifted their attention from stationary media to perpetual media on the go, traditional advertising lost some of its appeal. Digital marketing technologies and their ecosystems have dominated growth in marketing budgets for over a decade.
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