Digital advertising agencies are built for the Internet age
Firms are pushing clients beyond TV and print ads and onto websites, smartphones and tablets.
The LA Times did a piece about boutique advertising agencies scrambling the old notions of advertising. The statistics they mention, though, clearly show the direction of inbound marketing practices compared to traditional media buys.
The hot shops are pushing big-brand clients beyond the familiar confines of radio, television, magazines and newspapers and onto the Internet, smartphones, game consoles and tablets.
With more than 42% of the country’s TV homes equipped with digital video recorders, which allow users to fast-forward through commercials, and some younger viewers leaving TV altogether, advertisers are rushing to build Internet infrastructures, create Web videos and funnel content to social media sites such as Facebook, Twitter and Pinterest.
It’s a boom-time business. Ten years ago, companies spent an estimated $6 billion advertising their products and services online, according to eMarketer, which tracks advertising dollars. This year, that number is expected to reach $39.5 billion. Within five years, it could top $60 billion.
It’s not that advertisers are abandoning TV. Last year they spent $68 billion on television commercials, and in two weeks last month they placed orders for $9.1 billion worth of prime-time network spots. But marketers recognize that affluent and younger consumers are as likely to be found glued to their cellphones or the Internet as the TV screen.