Google still leads the search category
Seattle, WA (PRWEB) May 24, 2010
Razorfish unveils some surprising findings on how the economic recession affected client media buying practices in its sixth annual Razorfish Outlook Report published today. The annual media and marketing report reveals clients were actually more likely to switch to brand-focused marketing, not direct response, during slow economic times. The report also suggests that the economic recession is subsiding, showing client spend increased by 4 percent in 2009, versus a 13 percent drop in 2008.
"For this year's report, we examined the data differently to acknowledge the new realities the Great Recession presented our clients and us," said Jeremy Lockhorn, vp of emerging media. "We analyzed how our clients adapted to the challenging environment, what media proved effective, what didn't deliver as expected, and how this information can be used to direct successful strategy moving forward."
The report explores the effect last year's down economy had on media consumption and client spending. Among the findings:
- There was a recovery in spending in 2009 over 2008, albeit a small one. The average client media spend increased 4% in 2009, as opposed to decreasing 13% in 2008.
- Contrary to popular belief, not every brand shifted its advertising focus to direct response as a result of reduced consumer spending. In fact, 60% of clients who did switch the approach of their ads actually moved to a more brand-focused message.
- Clients continued to experiment with new media. Digital out-of-home in particular experienced significant growth, along with ad exchanges, data brokers and social media.
- Social media, which has exploded in popularity over the past few years, still only garners 4% of average client media spend. However, much of the cost of social media comes in the form of labor, not ad space - an important distinction when analyzing and planning media budgets.
Lockhorn added that 45 percent of Razorfish clients' media spend in 2009 was invested into vertical properties, search, ad networks and portals.
"Google still leads the search category," said Lockhorn. "However, Razorfish expects the combination of Microsoft Bing and Yahoo! to challenge Google's dominance."
The Razorfish Outlook Report also provides a look ahead at what media trends will dominate the media landscape in 2010.
"We looked beyond the big portals, search engines and ad networks that have traditionally ruled the space and focused on the up-and-coming media trends that are beginning to take hold," Lockhorn said. "Although we still examined how our clients spent their media dollars with the major players, we also wanted to give weight to the digital advertising long-tail."
With consumer adoption becoming ubiquitous and distribution models improving, the report predicts mobile and social media marketing will become key parts of clients' media budgets. In addition, it highlights other media trends, which are currently not getting as much attention as mobile and social, but will still have an impact in 2010, including:
- Ad verification systems - Although still relatively new, Razorfish has seen a drastic uptick in interest from clients and expects these systems' popularity to explode in the coming year.
- Local online advertising - As the iPad and other similar devices breathe new life into local newspapers, we expect to see an increase in both local display and local search digital advertising.
- In-game advertising - As gaming and social media continues to intertwine with location-based services, the opportunity for brands to provide relevant and meaningful interactions within a game is growing.
- Digital out-of-home - With growing popularity across the board, retail clients especially are embracing this technology as a way to communicate and connect with consumers in stores.
Razorfish publishes the report annually to help marketers make smarter choices about their digital media spend and investments. This year's Razorfish Outlook Report can be viewed in its entirety online at http://razorfishoutlook.razorfish.com
Razorfish creates experiences that build businesses. As one of the largest interactive marketing and technology companies in the world, Razorfish helps its clients build better brands by delivering business results through customer experiences. Razorfish combines the best thought leadership of the consulting world with the leading capabilities of the marketing services industry to support our clients' business needs, such as launching new products, repositioning a brand or participating in the social world. With a demonstrated commitment to innovation, Razorfish continues to cultivate our expertise in Social Influence Marketing, emerging media, creative design, analytics, technology and user experience. Razorfish has offices in markets across the United States, and in Australia, Brazil, China, France, Germany, Japan, Spain and the United Kingdom. Clients include Carnival Cruise Lines, MillerCoors, Levi Strauss & Co., McDonald's and Starwood Hotels. With sister agencies Starcom MediaVest, ZenithOptimedia, Denuo and Digitas, Razorfish is part of Publicis Groupe's (Euronext Paris: FR0000130577) VivaKi, a global digital knowledge and resource center. Visit http://www.razorfish.com for more information. Follow Razorfish on Twitter at @razorfish.
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