The recent announcement by the CRTC that Internet revenues in Canada had surpassed TV revenues in 2015 was an eye opener on the changing media environment. For the first time, Internet revenues hit $ 9.8 BN with TV at $8.9 BN. These numbers confirmed what many marketers have been seeing over the last few years as the “power of the internet” now coupled with social media has changed the media landscape in the country.
Advertising on the Internet now accounts for 34% of spend and is projected to reach 41% by 2019. Social media expenditures now surpass Magazine expenditures. Media research shows that not only is the online segment gaining but its influence as a critical element of a consumer decision to act is now just behind TV and newspapers. If you are marketing to Millennials, online activities are likely going to play an important part of your marketing program.
We are seeing a continued seismic shift in media usage. The recent announcement by Rogers Communications that they would be reducing and discontinuing some of their key magazine vehicles and moving them online due to falling readership and advertising revenues is just the latest example of what is happening to the media world in Canada.
The offline media segment is contracting with some areas doing worse than others. Print media – Newspapers and magazines have declined steadily over the last few years. TV is steady and Radio has also contracted. Advertisers are shifting funds to online and now look to the digital world to market their products. Social media including mobile is rapidly expanding and is an effective tool for reaching the younger consumer.
Marketers are now integrating TV with online activities as a routine part of their programs. Some marketers have moved all their expenditures to online campaigns as they feel this is where their target consumers are. These types of tactics were not in use a few years ago. It shows just how powerful online media has become and it is getting stronger every day.
TV is still the # 1 media vehicle with a 98 % household penetration with over 24 hours a week viewership for the 18 + demographic. However, the Internet has 89% home penetration and mobile phones have 88%. Online activities have proven powerful reach and can provide almost instant data on who is viewing; information that marketers can use to analyze the effectiveness of their programs.
Advertisers are now using social media as a key part of their marketing program. Sites such as Facebook, YouTube and Twitter interact constantly with potential consumers and can have a serious impact with these people. Campaigns are being developed that connect intimately with people. They build relationships and help to establish or build Brands. The “power of online” is that it allows marketers the flexibility to do almost anything to promote their products or services. Apart from advertising, they can run educational videos; contests, chat forums, research and all can be measured.
All indications are that the online media segment will continue to grow and that marketers will be using this vehicle to reach their customers. However, the question that many have; does the target customer reach translate into sales? There is a “mixed bag” of results in this area. Some companies have had great results, others not so much. Investment in online programs is not cheap. Good breakthrough creative can be costly and the ROI may not be good. Marketers need to evaluate their programs to see if the campaigns they are placing deliver on the objectives they have set.
The new media landscape will reach your target group in multiple ways. The investment in online and offline programs will vary business by business. Google can measure your online impressions and click-throughs but it can’t make your customers buy! In the end, all the classic marketing principles come together. Do you have the right product at the right price and does it meet the customers’ needs or wants?
