Survey: Social Media Continues To Steal TV Ad Dollars

A new joint survey by Forrester Research and Association of National Advertisers shows that Social Media Ad spending continues to grow at the expense of TV advertising.

The survey questioned 104 US advertisers across 21 industries with an estimated combined media budget of $14 billion. The advertisers include organizations such as Cisco Systems, GlaxoSmithKline, ING, Kraft, Marriott, State Farm and Clorox.

The results of the survey show that advertisers have earmarked 41% of their media budgets for TV advertising in 2010, which is roughly the same percentage that they spent on TV advertising in 2009. However, back in 2007, advertisers spent roughly 58% of their media budgets on TV advertising.

The rise of Social Media has been the main culprit for the continued decline in advertising budgets for TV ads, since the past 2 years. 77% of the surveyed participants said that they are moving their advertising budgets to Social Media from TV in 2010, 73% plan to shift haven’t committed to shifting their budgets – but are seriously planning to do so.

The lack of studies and metrics to gauge the effectiveness of TV advertising hasn’t helped matters either. Over the years, Brands have pumped in billions into TV ads without reasonable metrics to demonstrate the effectiveness of their campaigns.

Social Media engagement metrics are also in their infancy, but even in such an embryonic state – these features offer far more insights then TV based counterparts.

We expect that advertising revenues will continue to move online, specially to Social Media outlets for the next 2-3 years. The development of brand building, marketing and advertising features such as Fan pages for brands, insights into interactions on the fan pages etc on sites like Facebook would only aggravate this trend.

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