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Online Ad Spending to Grow 20% in 2012. TV Ads Come Along for the Ride

Spending on digital ads will grow 20% this year to reach nearly $40 billion, according to eMarketer. By 2014, it expects online ad spending to reach $52.8 billion and by 2016–$62 billion. "Advertisers' comfort level with integrated marketing is greater than ever, and this is helping more advertisers—and more large brands—put a greater share of dollars online," said David Hallerman, eMarketer principal analyst.

Print ad spending will take a hit, eMarketer also predicts. In fact, it believes that in 2012 online ad spending will exceed the total spent on print magazines and newspapers for the first time, at $39.5 billion vs. $33.8 billion

TV Ad Spending Steps Up Too

Spending on TV advertising, though, will not be negatively affected and may well benefit from the growth in online ad spend. eMarketer estimates TV will grab $72 billion in US ad dollars in 2016, $10 billion more than will go online.

There are several statistics capturing the steady rise in online ad spending: Kantar Media reported last year that Internet media accounted for more than one-half of the dollar gain in total ad expenditures during the first six months of 2011.

Display spending jumped 12.9% and search investments rose 8.6% as each benefited from a surge of money from the travel, local service and insurance categories. Increasingly, these studies are also quantifying how related formats, such as television and DOOH, are intersecting with online advertising.

Adding Interactive TV to Online Marketing Strategies

Just before the start of the holidays a handful of companies announced plans to add interactive TV to their online marketing strategies. InterContinental Hotels Group said it would expand its booking solution across the Android platform for the Kindle Fire and other Android tablets–as well as Google TV.

"As consumers embrace new devices like tablets and interactive television, we will continue to expand our reservation options and brand presence through these fast-growing, emerging touch points," said Michael Menis, vice president, Web and Interactive Marketing, IHG.

Separately, BT, Red Bull TV, Honda, and Ladbrokes announced they would develop interactive campaigns to run on the Rovi Advertising Network as part of the Rovi Smart TV Advertising program. These companies join Channel 4, which was one of the first to join the Rovi Smart TV program in the United Kingdom.

Campaigns Tie TV to Mobile CTA

A similar synergy is also playing out in mobile. Pillsbury recently ran a television campaign for its crescent rolls on television that included a mobile call to action. In Kong Kong Coca Cola, and its so-called Chok campaign, combined a television commercial with a mobile app and instant win promotion. The app was downloaded 390,000 times in large part because of the novel way the app worked–similar to a Wii, it turned the mobile phone into a remote controller.

The TV and YouTube Connection

Television campaigns are also increasingly being matched up with complementary YouTube ads, for similar results. Google recently partnered with Ipsos to measure the relative and combined effects of YouTube in-stream ads and TV ads on ad recall and brand metrics across six advertiser campaigns. It found that people who watched both YouTube and TV ads showed a 2X increase in brand recall than people who only saw TV ads.

Those that only watched a YouTube ad had a brand recall rate 1.5X those who only watched a TV ad.

Increase in Engagement

Such technology increases engagement with viewers, a case study by BIA/Kelsey finds.  BCM, an interactive TV technology provider, conducted the case study with BIA/Kelsey, and determined that when programming was enhanced with interactive 'clickable moments', the click through rate on surrounding interactive increased ads 20% of clicks on TV resulted in Web clicks to the programmer or advertiser web site.


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