Declivity of “Print Era” Clears Throne for Digital Advertising

Is the demise of the book, magazine, and newspaper creeping upon us? In the age of digital advertising it’s only appropriate to question whether print advertising is in jeopardy as digital ad spending surpasses that ofits predecessor. As social networking sites such as Twitter, Facebook, and Myspace continue to grow at a monumental rate; the demand for online marketing and digital ads has outgrown that of the demand for print advertising. Marketing firms are seeing more clientele using social networking resources as a way to project their promotion and sales, as well as a way to appeal to several different audiences all at once. According to research firm eMarketer, investments in ad spending on social networks worldwide is expected to rise 14% this year to $2.5 billion. Social media is the fastest growing segment in the $55 billion world of online-ad marketing.

In December 2009, Outsell (a company that helps publishers and commercial information providers grow their business) conducted a study which examined the spending habits of 1,008 advertisers. Results conclude that online-ad spending will increase 9.6 percent while other forms of marketing and advertising will only increase a mere 1.2 percent. At this point it is not a question of “if” digital advertising will surpass other forms of marketing, but more-so “when”. Digital advertising not only comes in the form of online publications but video, email, and search engine keywords as well (i.e. Google). The Outsell study was conducted a month prior to co-founder of Apple, Steve Jobs announcing the Apple Ipad. The release of the device could have only accelerated the demand for digital marketing, as a key element of the device is to integrate online news in such a way that is just as customary and familiar to an individual as opening a newspaper or magazine. Although the statistics state that 32.5% of the $368 billion that marketers will spend this year are going to digital (and 30.3% to print), what does this mean for our withering economy? Yes, we have the statistics that confirm who will reign supreme in the marketing world this year but will the excessive spending by both consumer and company put additional barriers in the way of piecing back together our economy?

Lastly, what will this mean for your business? Will you be focusing more on promoting your business via internet vs. doing so by way of print media?

- CEO of The Precise Agency Group

Michael Hendrix