Future of Media: Budgets are Back, P & G’s Digital Plan, Media Quality Research
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UK advertising budgets hit their highest level in four years. Budgets tend to increase gradually every year, so we are making up for lost time. The IPA surveyed 300 UK marketers – 12.8% will see bigger budgets, the same will see cuts. 25.6% exceeded their budgets.
I have a concern. Outdoor advertising was the only major media category to record a budget cut, with 11.9% of companies that cut OOH spending outweighing the 9.9% that revised up. What is happening here [DM me]? Are we going to dive back into confinement? Latvia re-entered containment earlier this week and in the UK this week we had the highest deaths since March.
More digital at P&G
Santa has lost a few elves this Christmas – there are supply chain issues ahead. We’ve got them covered. We know what happens to marketing spend when retailers and service providers can’t fulfill orders. Just look at the first lock.
As a result, P&G is now investing even more in digital advertising – it can be turned on and off almost at will. Creative can be turned on or off with little work compared to some analog means. With costs rising throughout its supply chains, this is the medium where P&G believes its first party data can help it make the most money.
CFO Andre Schulten said, “The more efficient and effective we can make our spending, the more attractive it becomes to make these investments. Strangely enough, efficiency breeds effectiveness and efficiency breeds expense and that drives the market. “
In the year through June 2021, spending rose 12% to $ 8.2bn (£ 6bn) and it will look to leverage more of its ‘optimized targeting pool’ to improve it further.
Quality media environment
Two reports have come in regarding the quality of the media.
Newsworks’ premiere highlights the long-term return on investment of news advertising. The body representing the news industry asked Benchmarking, a division of Omnicom Media Group, to analyze some 1,012 statistical business models built over the past decade to detail the benefits of the business environment. ‘information. Brands that have spent (the right proportion of their budget) on information have seen their profits increase by 10% over the past three years. Yes, “correct” is the hardest part to get. And yes, I could have done a more in-depth look at the mechanics of the search – but I have no doubts about the results. In fact, 10% seems like a poor return on your investment. The news industry need only report ad fraud and junk content in the long tail and mind-blowing dirt monetized on user-generated content sites. Well, that’s a journalist’s opinion anyway.
Next is Integral Ad Science. The brand’s safety site noticed an increase in hate speech in the first half of 2021 on the web.
Although the UK has the lowest levels of brand risk on desktop video compared to any other market, it has seen an increase in ‘hate speech on desktop video increased by 13.4 percentage points, going from 2% to 15.4% in the first half of 2021 ”.
Nick Morley, Managing Director EMEA at Integral Ad Science, said: “The marked reduction in brand risk this year suggests that the stability of the industry is recovering.
Also in the UK, it looks like our patience for ads has dropped dramatically, judging by view times. “Video ads were displayed for 18.1 seconds in the first half of 2021, up from 24.5 seconds in the same period the year before.”
Maybe it’s just because we’ve all seen more ads from the comfort of our homes (yes YouTube, I know you have a premium tier).
Meet the minds of the media
In the hot seat this week is Garrett O’Reilly, Managing Director of Hearts & Science UK. He’s excited about the unexplored frontiers of the metaverse and more aptly what a media plan looks like in this space.
His lead for fresh starts in the media space is simply to “keep going” – advice Nick Kendall passed on to him when he was planning manager at BBH.
Read it here.
Or read the latest briefing on the future of media.
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