Strata

Ad Buyers’ Love Affair with Digital Cools a Bit

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A RENEWED INTEREST IN TRADITIONAL MEDIA?

Digital media remains the fastest-growing medium in the U.S., with 70% of agency buyers expect to put more money into online advertising in 2011. But that figure has been trending downward in the past two quarters.

Inside Radio reports today that STRATA’s quarterly survey finds that while seven-in-ten buyers plan to spend more online, the figure was 78% in fourth quarter and 80% in third quarter of 2010. The downward shift comes as there’s been renewed interest in traditional media, suggesting there may one day be a ceiling for online spending.

While 11% of agency buyers report they’re already putting more money into digital than traditional media, nearly four-in-ten (39%) believe online will never overtake traditional.

“It’s not the standalone piece that people were hoping for, but it remains an integral part of a campaign,” STRATA marketing chief J.D. Miller says. Interestingly, when asked how they buy their digital advertising, “through traditional media” was the top answer.

That’s a reverse from last quarter, and an indicator traditional media may be doing a better job selling its digital assets. As many broadcasters have discovered, social media can be a great way to promote a brand, but when it comes to making money it remains an uphill climb.

Those sales may prove even tougher as STRATA finds buyers are growing less interested in putting their dollars toward social media.

The survey finds advertisers are having a difficult time tracking the ROI on social media, so while they’re aware of its branding strength, whether it can sell a product hasn’t been proven.

Digital display remains the top pick for ad buyers (76%), followed by search (57%) and then social media (56%). Facebook is the top social media focus for advertisers (83%), followed by YouTube (38%) then Twitter (36%).

Location-based advertising continues to stay well off the radar for advertisers; with 63% still saying it is not in their 2011 plans.

Mobile was also remains again out of step with advertisers, with one-in-five saying they’re using mobile campaigns. The survey also shows that 11% of ad buyers are less interested in television this year.

ABOUT STRATA

STRATA is the nation’s leading provider of media buying and selling software.  The custom solutions supplied by STRATA empower clients to sell and efficiently purchase all media types including cable, broadcast, newspaper, radio, outdoor and digital advertising mediums.  On average, over $50 Billion in advertising dollars flow through STRATA systems per year.  

The whole-scale changes that are occurring in this fragmented media landscape require a customizable and convergent solution. STRATA provides the technology to enable organizations to lead rather than react.  By transforming the way advertisements are placed and tracked, STRATA adds efficiency and precision across traditional and emerging platforms.

Headquartered in Chicago, STRATA has been supplying solutions to the media buying and selling industry since 1983.  STRATA is owned by Comcast Cable http://www.comcast.com/.  For more information, visit www.gotostrata.com http://www.gotostrata.com or call (800) 9 STRATA

For more information: www.gotostrata.com,
 www.facebook.com/STRATA and on Twitter - @gotostrata

For Further Information
Contact: J.D. Miller
Director, Marketing and Communications
STRATA             
312) 222-1555