InterMedia Insights 6.20.2016

Hot Media Trends for June 20, 2016

  • U.S. internet ad revenues reached a new high of $15.9 billion in the first quarter of 2016, up from $13.2 billion in the year-ago quarter, according to a study from the IAB and conducted by Pricewaterhouse Coopers US. The 21% year-over-year first-quarter jump represents the sharpest spike in four years. David Doty, EVP at IAB says this first quarter lays the foundation for what could be the biggest year yet for digital ad spending, and PwC predicts spend estimates in entertainment and media in the U.S. will hit $720 billion by 2020 – up from $603 billion in 2015. Globally, PwC estimates to entertainment and media worldwide revenue to rise at a compound annual growth rate of 4.4% during the next five years – from $1.7 trillion in 2015 to $2.1 trillion in 2020. (Read More on Response Magazine)
  • According to a Nielsen Catalina Solutions study, magazines deliver the highest return on advertising spend (ROAS), with an average return of $3.94 for every dollar spent on advertising. The study, which was presented at the Advertising Research Foundation Audience Measurement 2016 conference, revealed the next closest media platform is display advertising with a ROAS of $2.63. To understand the average ROAS across media type, NCS, analyzed over the course of 11 years (2004-2015) nearly 1,400 campaigns across 450 brands from seven popular categories: baby, pet, health and beauty, general merchandise, food, beverage and over-the-counter (OTC). (Read More on MediaPost)


  • New research into the types of media that influence consumer purchase decisions could go a long way toward dispelling myths that radio isn’t an effective marketing medium for targeting Millennials. “Reaching Consumers During the Purchase Process” finds that a strong correlation between media exposure and purchase remains highest for radio and out-of-home among the prized 18-34 demo. The study, conducted by ad agency Mediavest | Spark with iHeartMedia, uncovered some surprises about Millennials, who are often portrayed as “digital-first” or “digital-only” consumers. Audio and out-of-home still show the highest links to consideration, decision-making and actual purchase compared to other media, although the association is lower than for adults overall. (Read More on InsideRadio)


  • Facebook is introducing ways to measure just how effective online ads are at increasing in-store visits and offline sales while also making it easier for users to find businesses closest to them. The social network is adding several new measurement tools that will allow stores to see how many people visit a store location after seeing a Facebook campaign. The features also allow for optimizing ad creative, delivery and targeting based on store visits and see results across individual stores or regions to better optimize ad campaigns. Facebook’s updates will provide real-time information on the offline response to advertising, allowing marketers to optimize creative in real time using Fb’s insights at the campaign level. The store visit metric, according to Fb, is based only on information collected from people who have turned on the location services feature on their smartphone. The feature rolls out in the next few months, early testers have seen strong results. (Read More on ADWEEK)


  • Cable and network TV news saw revenue increases in 2015, thanks to the presidential campaign, but still face serious threats to their business model, according to a new report by the Pew Research Center. The report, issued Wednesday, cited a surge in viewership at CNN, where evening ratings climbed 38% compared to 2014. Overall, the cable news industry saw a 10% increase in revenue from advertising and subscribers. Network news also saw encouraging signs, especially as the presidential campaign drove ratings at the three Sunday morning talk shows. Ratings for ABC’s “This Week,” NBC’s “Meet the Press” and CBS’ “Face the Nation” were up 8% from 2014. The report also highlighted dismal news for newspapers, with print publications shedding 7% of their circulation in 2015, the worst year since 2010. (Read More on Variety)

Don’t Forget…

Read the First Installment of “Get Your Digital House In Order” Series

At InterMedia, we negotiate over $600M in media dollars annually.  That’s a lot of traditional broadcast buying of TV, radio and print.  When it comes to TV, there is simply no other medium that can provide such a broad reach for awareness of your company, product or brand.  That being said, before you ever use a broadcast medium, you must ensure you have your “digital house in order” so you can continue to communicate with potential customers who see your broadcast advertising.  Customers are rarely ready to purchase from you today and will need additional communication along their journey toward purchase. In this series, we’ll outline effective digital strategies and tactics crucial to augment and support any broadcast campaign.  This post highlights the role of email marketing.  Read the full post.

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