May 28, 2008/6:15 PM (EST)/ The Future of New Media Spending

The focus of this topic takes a closer look at David Lieberman’s article “New Media expected to get more ad dollars” in USA Today® (http://www.usatoday.com/money/advertising/2008-03-25-alternative-media-ad-spending_N.htm). Lieberman’s premise is based on forecasts made by PQ Media, a research firm and leading provider of alternative media econometrics data to media stakeholders in need of actionable strategic intelligence for high-stakes investment decisions (http://www.pqmedia.com/).

According to the CEO of PQ Patrick Quinn, “Americans are spending more time out of the home, working late hours, communicating via wireless devices, shopping in malls and stuck in traffic... There has to be some change in (ad/marketing) strategies to reach these people." PQ Media predicts that companies will spend more than $160.8 billion in 2012 — up 82% from 2008 — on 18 emerging markets including online videos, store-based TV screens, sponsored events, TV and movie product placements, cellphones, video games and digital video recorders.

FROM ALTERNATIVE TO MAINSTREAM
As consumer habits change, advertisers and marketers will significantly raise spending on new digital and outdoor media. (in billions)
2007 $73.4
2008 $88.2
2009 $103.3
2010 $121.2
2011 $139.1
2012 $160.8
Source: Source: PQ Media Alternative Media Forecast 2008-2012

PQ Media’s predictions on social lifestyle changes in America are strongly supported in an article titled “Understanding Consumer Database Marketing” (Schoenbachler, Gordon, Foley and Spellman, 1997). According to Schoenbachler, Gordon, Foley and Spellman, “Consumers are indicating a preference for communications which are personalized and directed specifically to their needs, typically based on past purchase transactions.” Based on these predictions, the future of Direct Database Marketing using emerging electronic media appears bright. Also, with more and more companies demanding ROI analysis on marketing expenditures, the world of New Media offers significant advantages over tradition broadcast and print media.

~ Dan