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Friday, March 20, 2009

Interactive vs. Static Media Spending

While the U.S. advertising market may be struggling as a whole, largely a result of the contraction in consumer spending and a reduction in advertising budgets, there are a few bright spots.  Not surprisingly, the segment expected to grow the fastest this year is highly interactive and embraces my community concept: social networking.  Interactive online advertising on social networks and videos is expected to grow by 25% this year, bucking the overall downward trend in advertising spending seen during the current economic contraction.  The eMarketer report also highlights search and video game advertising, which the research firm expects to grow by 8% and 20% respectively.  The growth in video game advertising makes good sense. Many hard-core consumers spend a decent part of their day engaged in these virtual worlds and the venues are highly interactive, contributing to a sense of immediacy with the products advertisers are promoting.  In contrast to the growing interactive media space is print journalism which is experiencing declines across the board, which is obviously part of the recession but I also believe is a secular trend away from static media.

The message is clear: media that embraces and offers relevant and immediate information to consumers in a community format is engaging consumers and the advertising dollars naturally follow.

2 comments:

Aoibheall said...

When you say "video game advertising," I assume you're talking about within-game advertising. For those of us who are not gamers, what does that look like? Product placement? Characters in virtual worlds walking around talking up real-world products or services?

Will Hambly said...

Aoibheall,
Video game advertising encompasses interactive virtual products, virtual world banner advertising (like billboards or on the walls of buildings within games), and a ton of other creative applications. Check this out for more context: http://en.wikipedia.org/wiki/In-game_advertising