Inland Empire Advertising – The Media Climate

Inland Empire Advertising Panel - AAF-IE
Inland Empire Advertising luncheon, Oct. 11th, 2012 in Corona. Panelist and advertising professionals talked about the current media market in the Inland Empire.

by Jon Burgess

The Inland Empire has always had challenges with its small media market, even though we have a large media population.  The Inland Empire would be in top 20 DMA’s in America, but it isn’t considered DMA (Designated Market Area ).  Inland Empire advertising has been primarily relegated to print, radio, outdoor, and cable.  The IE, and Orange County are the children of Los Angeles, and thus, we don’t even have our own local TV stations.

Yesterday, I attended the American Advertising Federations Inland Empire’s Media Buying Panel in Corona.  It was good to hear from some of the panel experts that sell Inland Empire advertising.

Scott Welsh, the Director of Sales for Clear Channel Media in the Inland Empire pointed out that while our market may be limited, “it still is a great advertising value, because our media coverage is still reaches the population.”  I think what he was alluding to, was that because of our small media market, we don’t have the competition among media outlets that you may see in other standalone DMAs, thus our media is consumed fairly well.

It was also interesting to hear from Matt Strohfus of Lamar Advertising in the Inland Empire about “Outdoor” and “Billboards”. We all know that with all the miles of roads, there is a lot of opportunity for Inland Empire advertising.  Matt reminded us about changes in billboard digital advertising.  He said, “We are finding that digital billboards are more viewed because the viewer does not want to miss the next ad.”  So, I tried it on the drive home, and he is right, I think people are focusing more on the digital billboards than printed billboards.

The other Inland Empire advertising growth area is online. You see growth coming from the downside of having a small media market, we don’t have enough public relations outlets.  We have seen a lot of new “hyper-local” websites popping up to provide the missing content.  Sites like InlandEmpire.US, where it will publish any Inland Empire content, or like IEShineOn.com, who has built a following around providing events and things to do with in the Inland Empire.  Advertising on the online channels is far less expensive, and with Google continuing to increase its search effectiveness, much more targeted advertising.

Denver, the AAF & Droga 5

While in Denver

Last week in Denver, I (Jon Burgess) had the opportunity to hear and see work from David Droga (pictured above), founder of Droga 5 (www.draga5.com), one of the hottest agencies in the U.S.

Cool thing about their work; while creative, they keep it honest and simple…. a good lesson in not being over creative for creativity’s sake.

They have had some great work, from Jay Z to Puma to New Castle, and you can check it out here, http://www.droga5.com/#/work.

AAF-Inland Empire

We also have some great educational programming coming up in the next few weeks with AAF.  The first event is a “Media Buying Panel” with traditional media vendors; Radio, TV, Print and Outdoor.  You can find tickets here http://aaf-inlandempire.com/.

Next month, we’re having a social media panel, details to come.

 

How to Gain Actionable Business Insights through Social Media

Join the RedFusion team at an AAF event on June 14th at the Old Spaghetti Factory in Rancho Cucamonga

The AAF Inland Empire knows that social media is important to your business.  Each and every day we encourage customers to like us on Facebook, follow us on Twitter and + 1 our website.  Let’s assume that your business has 1500 “likes”, 800 followers and 200 +1’s – what do these numbers mean?

Social media offers invaluable data for your brand but merely tracking the number of likes, followers and +1’s is not the goal.  Instead analyzing social conversation about your brand can produce invaluable insights – if not hidden gems – if you know what to look for.

Get more information - http://aaf-inlandempire.com

RedFusion Media has been members of AAF-Inland Empire for years, we have won numerous ADDY Awards and currently Jon Burgess serves as President of the club.

Media Modeling

While Chrysler may be going through bankruptcy, and being run by the Obama administration, it did have very successful internal marketing strategy brewing.  They had formed an internal advertising agency called Organic.  Driven by the idea that data generated from the Internet can be tracked,

Chrysler’s digital marketing agency, Organic, has designed a “media modeling” system that helps the company calculate the best ways to allocate its marketing dollars.  The modeling proved very successful, predicting “Jeeps” 2008 sales within 1 percentage point.

Dealerships have been hit hard, online advertising spending has dropped some 30-40%, but for those dealerships that are still around, they should strongly consider keeping their online advertising budgets up.  Chrysler’s agency “estimates that about 70% to 80% of consumers research vehicle purchases on the Web.”  In a tightly competitive market, local online advertising for the dealerships is a must.

http://online.wsj.com/article/SB124259801821028103.html

Media Modeling

While Chrysler may be going through bankruptcy, and being run by the Obama administration, it did have very successful internal marketing strategy brewing.  They had formed an internal advertising agency called Organic.  Driven by the idea that data generated from the Internet can be tracked,

Chrysler’s digital marketing agency, Organic, has designed a “media modeling” system that helps the company calculate the best ways to allocate its marketing dollars.  The modeling proved very successful, predicting “Jeeps” 2008 sales within 1 percentage point.

Dealerships have been hit hard, online advertising spending has dropped some 30-40%, but for those dealerships that are still around, they should strongly consider keeping their online advertising budgets up.  Chrysler’s agency “estimates that about 70% to 80% of consumers research vehicle purchases on the Web.”  In a tightly competitive market, local online advertising for the dealerships is a must.

http://online.wsj.com/article/SB124259801821028103.html

Ad Spending Continues to Drop

Deeping cutbacks are continuing to hit the advertising sectors.  In a Wall Street Journal (WSJ) report showed that fourth quarter 2008 ad spending dropped 9.2% from the year before.  The biggest sector to fall back was the auto advertisers, with a 15% decline, totaling 3.2 Billion.

Online Advertising has projected a dropped of 0.4% for the first quarter of 2009, according to a eMarketer study. “eMarketer forecasts that online sales will be virtually flat in 2009,” says Jeffrey Grau.

Sources
http://online.wsj.com/article/SB124148609257185819.html
http://www.emarketer.com/Article.aspx?R=1007068

DRV’s are costing TV ads money

2008 numbers on the amount of TV ads skipped while using a DVR product reached about 6%.  That means of all commercials, people fast-forwared or jumped over 6% of all ads on TV.  That number is expected to rise to 16% by 2011.  (source DVR Research Institute from the Hollywood Reporter)

For advertisers, what does that mean?  Well it means that there in 2008, there were an estimated $5 Billion  of advertising that went unseen, of the $80 Billion annually.  The number may reach $14 Billion in two years.

Recently I wrote about the “Death of TV Ads“, which talked about the increasing demand of people wanting to buy there content verses having to see content paid for by ad sales.  The assumption would be that if people are using DVR’s more often, then they will be apart of the trend to get away from paid advertising content.

42% of Internet users say they are motivated to begin an online search after viewing a television ad

motivated to begin an online search after viewing a television ad.A new study of the web and TV ads indicates that a company’s website may be the benefactor of some “organic” traffic from TV advertising. While recalling an ad is difficult for most potential buyers, in increasing numbers many make online searches after seeing an ad that peaks their interest in a product.

This is a great by-product of your TV advertising. But, does the prospect find YOUR site? Add Pay-per-click search advertising and capture those prospects searching for you. Call Jon or Molly (909)798-7092 to discuss how we can assist your targeted online ads.

Television advertising and search advertising support each other, increasing their effectiveness and your results. The best advertising campaigns often involve a mix of TV advertising and Search.

“Not every consumer (who watches a TV spot) is going to call now or go online to find more. But instead, they organically “remember” the next day and then decide to search about whatever the TV commercial stimulated,” stated Lynn Fantom, CEO, Interpublic Group’s ID Media.

This information and research was provided by SpotRunner.com

Contact: Ronald L. Burgess, 909-798-7092
104 East State Street, Suite P
Redlands, CA 92373

Television advertising and search advertising support each other.

Exerpts for our full article on RedFusionMedia.com

A new study of the web and TV ads indicates that a company’s website may be the benefactor of some “organic” traffic from TV advertising. While recalling an ad is difficult for most potential buyers, in increasing numbers many make online searches after seeing an ad that peaks their interest in a product. Continue reading the full study…