The Morphing of Technologies
By Nicola de la Salle
This year's gloomy forecast for advertising expenditure has caused concern in the media world, with the only golden child being the Internet. Why has media taken a sharp turn?
According to Advertising Age, TV media spending is predicted to experience only marginal growth in 2007 (averaged at 3.6 percent) since marketers are spending more money on non-traditional media, such as the Internet, direct mail and events. In sharp contrast, Internet media spending is predicted to increase by approximately 15 to 20 percent, with 41 percent of these consumers increasing their spending online in 2007, according to Cowen and Company and eMarketer.
So why are more and more consumers using the Internet as a preferred method of communicating and purchasing? The interactive consumer!
Our busy lives, in which time is a precious commodity, certainly play a factor but when it comes to news and entertainment, many believe that the most crucial element is that consumers wish to participate and control what they see and when they see it. Consumers are thirsting to read, create and share their own experiences, as demonstrated by YouTube and MySpace but the key here is that they are in charge of how they view the media and why.
Advertising and news industries are then saddled with the responsibility to produce content based on this need.
TARGETED MEDIA TO U.S. HISPANICS
One of the issues facing television media companies is that many consumers are choosing to avoid paid advertising. The technology provided by TiVo has enabled consumers to record just the television programming they want to watch, while avoiding paid advertisements. The Internet provides a unique opportunity in allowing the consumer to watch television online, while marketers supply advertising targeted to a specific consumer demographic. This is quite apropos to marketers who wish to penetrate the U.S. Hispanic market.
The Internet enables advertisers to place millions of impressions to a targeted audience, such as U.S. Hispanics, with a greater impact and lower cost than television. The interaction may take the form of streaming live video, consumer feedback, community forums or live web operators assisting consumers with their purchase. It seems here that the skill lies as much in driving traffic to the website as creating an interactive experience and targeted approach that appeals to consumers.
Aside from increased website traffic via a community approach, the web can generate vital information on the viewing and buying habits of U.S. Hispanics. Information on where they live, the time it takes to complete purchase, how long video is streamed and consumer loyalty easily can be gathered.
With its offering of streaming video, community approach and targeted content, the Internet has arguably reached the position of interactivity that television is still striving to achieve today.
Nicola de la Salle is vice president of West Coast operations at Livemercial. She can be reached at (949) 306-9449, or via e-mail at ndelasalle@livemercial.com.
