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Structural shift hits paid media

News, 17 February 2015

SYDNEY: The increase in Australian spending on owned and earned media in 2015 is expected to be almost 3.5 times that of the increase in total paid media, according to a new report which says this trend can no longer be seen as merely cyclical.

Based on a survey of the top 500 advertisers and every major media sales director in the country, SMG Media Futures 2015, from media agency network Starcom MediaVest Group, reported that marketers were twice as optimistic as media executives about the year ahead, the former predicting a 2.7% increase in media spend, the latter expecting just 1.3% growth.

"For the last three years, we've seen modest ad spend predictions from both advertisers and media execs, which has aligned with actual industry media spend figures," explained Chris Nolan, Starcom MediaVest Group CEO.

"Rather than this being cyclical, it now appears to be a structural change as the impact of dollars shifting from paid to owned media starts to hit."

The study also anticipated significant growth in social and mobile during 2015, with social video, in particular, being boosted by Facebook's introduction of video ad formats.

"Last year we said there was a paradigm shift for marketers around personalisation and the strong growth in mobile, social and video reinforces that," Nolan said.

Overall, marketers are facing increased pressure to deliver more agile marketing approaches as new learning systems allow them to understand more about their customers in real-time.

More than half of advertisers surveyed, for example, said they expected to utilise dynamic creative online ad solutions in 2015, up from 39% the previous year.

"The overwhelming feedback from advertisers who utilised dynamic creative last year was that it was incredibly successful," observed Nolan, "and so we expect to see a stronger marriage of data and creative in place this year."

Similarly, the use of point-of-sale is falling out of fashion as marketers pursue mobile-enabled options.

"Increased consumer acceptance to allow location tracking and push notifications to mobiles enables advertisers to influence decisions near the point of purchase," Nolan said. 


"This is an important shift in a space that has traditionally been owned by retailers and in-store promotions."

Data sourced from PR Wire; additional content by Warc staff