Digitization of the media is already unstoppable and this is accompanied by the unstoppable decline in digital advertising revenue. It seems that the media sector cannot think of anything. And that advertisers seem hell-bent on hurting themselves.
Large consumer products companies such as Nestlé, Procter & Gamble, Unilever and L’Oréal, thanks to their astronomical advertising investments, elevated television as the leading medium. Until today it was like that. Only through television advertising was it possible to cover all households and each of their target groups. Still in 2018, TV was by far the largest individual medium according to net income, claiming for itself 30% of the advertising pie.
It seems that this supremacy is now coming to an end. After the print media suffered for years from the advertising debacle, we are now seeing how digital advertising media gallop ahead of television. The old media with its digital strategy are to blame for the number of online competitors growing year after year.
The entire media sector is being digitized by force. Print media one after another move to the internet. TV channels create addressableTV and their own streaming platforms and TV on demand (MiTele, AtresPlayer, premium versions, etc.) on the network. The radio becomes digital audio. The outdoor advertising sector bets and invests in out of home digital screens, which already represent almost a third of its turnover.
And as digital ad spend grows and grows, everyone wants to take their slice of the hearty pie. The business with banners and performance advertising will increase by 8.6%, reaching 3,900 million euros. Looking at these figures, it is understood that other media genres turn pale with envy. Digital is the big winner in this crisis. Budgets keep shifting towards digital channels.
What is not to be envied are the billing problems this year for the classic media. Although the use of the media increased significantly during the crisis, print, TV & company have not been able to benefit from it. According to PwC’s “Global Entertainment & Media Outlooks” report, the demand for entertainment content and digital information has increased massively, while the corona crisis has disrupted the growth of the media and entertainment industry. At 5.6% or $ 120 billion it was the biggest drop in the history of the industry.
But the problem does not stop there. The growth of digital advertising spendings does not benefit the Singapore media with its digital offer. Between 60% to 80% of global ad budgets flow to the duopoly channels Google (with YouTube) and Facebook (with Instagram). And Pinterest, as well as the Chinese TikTok, have also entered the advertising ring.
Faced with a certain passivity of the Singapore sector, A complete system that we must observe: all the first-party data stays in the Google world. Google becomes the digital gatekeeper. We should not be at the expense of platforms that unilaterally set the rules of the game. ”
It does not seem to matter that some studies deny social media its advertising effects due to the great distraction that content produces in them. While they reinforce the validity of the advertising memory in the classic media.
Nor is it much use that companies like Procter & Gamble, Unilever, Uber and Adidas have (in part) turned their backs on digital media. In 2017, the Adidas brand surprised us all with its announcement of abandoning TV advertising and betting only on digital. Two years later they confirmed that the budgets for TV, Out of Home and advertising in the cinema had had a greater positive effect than expected in the turnover of their e-commerce. Going back on his vaunted decision of 2017.
But all this does not stop the lemmings among advertisers with their unchanged war cry of “digital first!” to turn their backs on traditional media. Which now leads to a war to the death between the media for the remaining advertising budgets. Some televisions try to increase their rates in the remainder of the year, receiving the laughter of media agencies and advertisers.
Traditional media seem to end the arguments against Google and Facebook. At the same time that wide coverage is also running out, they are playing with the creation of more and more of their own digital channels. But that’s just the coverage that brand makers need like May water for their campaigns. Reach and wide coverage that digital media with its 1 to 1 marketing performance of great segmentation cannot logically offer them.
Advertisers themselves thus enter a dead end tunnel. By cutting their ad spend in print and TV while strengthening North American digital platforms, they hurt themselves in the long run.
If, in addition to poor advertising effectiveness, they lack great coverage for their campaigns, successes and results are at stake. If they don’t intercede, this will end in fiasco. ”
For them and for the Spanish media scene. It is strange that all this is neither seen nor discussed in recent forums, congresses, festivals visited … Is Spain and its industry once again different from all?