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Home arrow Market Research Findings arrow Advertising and Marketing arrow What Obstacles Are Preventing Greater Digital Investments?
What Obstacles Are Preventing Greater Digital Investments? PDF Print E-mail
Written by eMarketer   
18 Feb 2011
Still room to grow in digital

Digital and interactive is not the No. 1 priority for companies when it comes to advertising. That position still belongs to TV, and a majority of advertising agencies feel there are several obstacles in the way of changing that.

STRATA, a software company for media buying and selling, polled agencies about their clients’ preferences in Q4 2010.

Spot TV is still the top advertising medium, with 44% of respondents saying it was the area where their clients were most focused. Internet and digital came in with 21%.

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Clients are still turning to traditional advertising methods, but they are open to incorporating social media and digital and interactive tactics.
Sixty-one percent of advertising agency respondents said they used social media as an online marketing tactic in Q4, and 78.9% reported using Facebook as a part of client campaigns.

The survey also found that 80.6% of agencies have clients interested in advertising on the iPhone, while 51.4% were interested in the BlackBerry.

More than 30% of respondents plan to use some kind of location-based service in 2011, but only 10% of clients have asked to advertise on Apple TV or with an iAd.

While 24% of respondents reported there were no major obstacles in the way of increasing clients’ digital and interactive ad spending, a majority of agencies feel there are still challenges to be overcome.

Lack of channel effectiveness was the greatest obstacle, with 26% of agencies choosing it as the primary problem. Another 23% cited lack of advertiser demand.

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Clients will continue to show increasing interest in emerging technologies as they prove their effectiveness and ROI.

But agencies must work to overcome the remaining obstacles to greater digital spending to make interactive the top priority for clients.

3 February 2011

 
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