What Advertising Agencies Don’t Know May Make Them As Obsolete As “Traditional” Television Advertising Campaigns

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Interview opportunity with Joseph Gray, CEO& Founder of REVShare. He regularly consults to Fortune 500 corporations on television marketing strategies in both traditional and new forms of television distribution and technology.

What Advertising Agencies Don’t Know May Make Them As Obsolete As “Traditional” Television Advertising Campaigns.

WHO:    Joseph Gray, CEO& Founder of REVShare, maintains a leadership position in the television advertising industry. He is an active member of the Direct Marketing Association and its Broadcast Council, where he has served as co-chair of Research. He regularly consults to Fortune 500 corporations on television marketing strategies in both traditional and new forms of television distribution and technology.

WHY:    As new tactics are deployed to reach an increasingly fragmented consumer traditional advertising agencies are struggling to regain media dollars lost to other advertising channels.

Advertisers will be spending significantly less on television and increasingly more on online advertising in the next couple of years, according to a poll of major advertisers by Forrester and the Association of National Advertisers, writes ClickZ. Some 78 percent of the surveyed marketers said the effectiveness of their TV advertising has diminished in the last two years. Some 80 percent said they would instead invest more in web advertising, and 68 percent pointed to search marketing specifically

MarketingSherpa also recently released its Third Annual Study of 680 attendees from the ad:tech trade shows who responded to the survey in the second half of December 2005. The survey illustrated that in-house blogs and RSS feeds were the favored emerging tactics for marketers, which indicates that targeting consumers is not just about cracking the code on how to get consumers to click and buy online, but is also about the online medium in which advertisers target consumers.

Advertising.com's third annual survey of interactive publishers has found that publishers expect increased spending for online branding from advertisers; increased support for video, rich media and behavioral targeting; and continued growth for large creative formats. Publishers expect web-based direct-response advertisers to account for the largest share of online ad spend (58.5 percent), but they anticipate more than 32 percent will come from more traditional, brand-focused advertisers, up from 26.5 percent in 2005.

Collectively the automobile industry spent $200 million less in U.S. measured media. Spot TV fell the most in 2005, sinking 9.5% to $15.5 billion, hurt by tough comparisons with the 2004 election season than in calendar year 2004.

WHAT:    According to Gray, advertising agencies faced with reaching these “demi”graphics,” advertising agencies need look to a “Google-like” advertising model, Cost-per-Action.

Google, one of the most significant business successes of our time, was built on the backbone of Cost-per-Action (CPA). And REVShare’s Cost-per-Action television advertising model bears a great deal of similarity to Google’s AdWords. CPA is a model that spurs market competition by lowering the barrier to entry for many advertisers and works on a bid basis for more frequent placement; the advertisers only pay for results.

Joseph Gray also can address the following:

•Google’s expansion into traditional media markets

•Trends in a fragmented television advertising universe

•Television advertising metrics

•The Cost-per-Action television model

•Cost-per-Action vs. Direct Response TV

Contact: Alain Jourdier, Vice President, Marketing & Communications 800.819.9945 x485

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Gary Goldhammer
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