Billium

Let’s face the facts, on-line advertising is in.

A couple years ago, a website was the must have to run a successful business. Now a days, Google Adwords has become the must have. Adwords is awesome! However, if on-line advertising is so popular and great shouldn’t companies be moving more of their TV advertising budget to on-line?

I found this great article by Jack Krawczyk of iMedia Connection. His answer to my question is based on two things: brands and users’ psychology.

Article link: http://www.imediaconnection.com/content/31028.asp

Even though on-line advertising is gaining popularity, TV has been growing over the past few years too. Brands have been using GRP (gross rating points= multiplying the frequency of a 30-second ad by the percentage composition of your target audience in the program block for which you are buying) to help media buying for years. However, many on-line marketers argue that GRP is an imprecise measurement and now a days, more people spend more time on-line.

Game changing fact: Over the past 15 years, time spent watching TV per person in the U.S. has gone up by nearly 25 percent

Brands are stubborn. If it ain’t broke, don’t fix it. The audience for TV advertising are still alive and apparently kicking. However, I feel change is on our horizon especially with the computer generation (people in their 40-50′s) getting older. Today’s world is all about convenience and on the go. People are starting to use PVR’s to watch their favorite shows whenever they want (fasting forwarding the ads) and watching on-line. I believe Brands will start to soon realize the great return on investment they can be getting with on-line advertising especially the simplicity of targeting specific target audiences, regions, and even countries.

Brands and Business will have to allocated more their budget to online…but just not yet