Such as "P&G Slashes TV Upfront Spending 10%" for example.
That's a keeper ladies and gents...stick it in your ppt sales or marketing presentations and rejoice as we usher in a new era.
Sensationalism aside (for a brief moment), the article above cites the Gillette acquisition as contributing (at least in part) to the reduction in spending. The reality is that "cost savings" i.e. the realization of media efficiencies is no doubt a factor, but what does this mean?
It means the following:
- The TV market has been artificially propped up with unacceptable levels of unnecessary and even harmful wastage (clutter) for too long. This is changing. Fast.
- The increased fragmentation and proliferation of choices and channels, combined with the ever-hardening of consumers to linear and predictable messaging has led to a double-barreled reducation in both efficiency and effectiveness
- In other words, marketers have no choice but to look elsewhere for new ideas, solutions, alternatives and approaches. Some of this alternatives include TV - call 'em fringe cable channels or pseudo derivatives like VOD or TiVo showcases...and then of course there's the 30-second spot online (that's like the old perv masquerading as a young teen in a chat room) And then of course, there's new marketing
- ...but really what this means is that TV has peaked and is now in the formative "late majority" phase of its life cycle. We've come off 2-odd years of flat to negligible growth in the Upfront season, and this year it will be down...and we may not see a return (ever) to the levels of yesteryear.
- The record amounts paid for 30-second spots like $1.3MM for the finale of American Idol are anomalies at best - band-aids in the hemorrhaging migration of dollars from analog to digital; from traditional to non-traditional; from old to new; from established to emerging; from controlled to democratized; from linear to non-linear; from communication to conversation; from one-to-many to many-to-many
- This is Robin Hood's day...except for one fact, it's a non zero-sum distribution which - when the dust settles - will leave a significant amount of money on the table.
About a year ago, I predicted that we'd be witnessing a future where media budgets decrease and marketing budgets increase. This is happening faster than anyone expected, and the implications are going to be profound on the ways budgets are requested, approved, allocated, implemented and rolled-over. It will also have commensurate impact and influence on compensation i.e. from "bang for buck" to "buck from bang"
Quality, purity, efficiency, singularity, focus, relevance, engagement, integrity, trust, creativity are all words you should be thinking about tattooing on your media foreheads, and while you're at it, start investigating laser-removal treatments for all those sagging words like reach, frequency, tonnage, GRP's, impressions, exposure, CPM's on your butts!
So feel free to cut and paste the Ad Age headline and if you like, you can even leave off the small print and pesky technicalities. There's more where that came from.
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