OK. I am ashamed of myself. That headline was, in part, a tease for the search engines.
It is also, in part, based on reality. Here is an article from the highly regarded Wharton School of Business:
“Americans spend an average of 14 hours a week online and 14 hours watching TV. But marketers spend 22% of their advertising dollars on TV and only 6% online, according to data compiled and analyzed by Google…says Wharton marketing professor Patti Williams…‘if you look in terms of the sheer amount of time most consumers are spending online and the amount of dollars being spent to reach them, it is still probably way under what it should be.’ ”
Alrighty then. Note to CMOs: split it 50-50 from now on.
And this gem from the same article. The CMO Council just can’t stop itself.
“…[CMO Council] says some of the lag in acceptance of digital advertising is due to advertisers’ long-term relationships with ad agencies…and with traditional media companies.”
Client-agency relationships are turning over faster than cards at a blackjack table. And the media “companies” (which the rest of the world calls media “agencies”) have clearly been getting the digital religion for the past couple of years.
Here’s why online spending doesn’t, and won’t, equate to consumers’ media time splits. Or if you prefer the CMO Council’s terminology, why digital is “lagging.”
Cost of Production (assume medium-size advertiser)
The cost of a banner ad is in the low thousands. The cost of a TV commercial is in the mid-hundreds of thousands.
Cost of Media
TV CPM is about 10x online CPM, ballpark.
Sunday night TV audience for 60 Minutes runs between 10 and 15 million. All of cbsnews.com gets half that in monthly unique visitors, so divide that by 30 and then give the 60 Minutes portion of the site about 10% of that.
Other Customer Touch Points
It would be nice if we only had to worry about TV and online. But there are about two dozen other non-media customer touch points an average marketer has to worry about.
I know this Marketing stuff looks easy. But the only Silver Bullet I’ve seen comes out of Golden Colorado.