Back to the Future

In a somewhat contradictory (to my yesterday’s posting) survey by Advertiser Perception (a survey of 2400 media planners) , more ad executives are planning to increase their TV ads budget in the next 6 months than for online ads. At least with 2 points in time, we can start mapping out the long term, almost liken it to comparing short-term interest rates with the long term one, where more volatility exists in the former.

Despite strong growth in online advertising, spending on TV ads still remains at a higher level than for online ads. According to WPP’s GroupM’s report “This Year, Next Year: Worldwide Media and Marketing Forecasts”, which forecasts contributions to advertising growth in 2007, spending in TV ads will increase more than that of online.

2007 Growth in ad spending
TV (North America / WorldWide) = 46% / 50%
Online (North America / WorldWide) = 41% / 28%

Some possible factors for this, as per the report:
1) Households watching Spanish language TV grew faster than expected and advertiers are starting to chase them. Over 70% of Hispanic households will have multi-channel options by 2010.
2) US TV networks continue to expand into new media, hence, offering a portfolio of diverse outlets for their advertisers.
3) Online advertising is too efficient in stream-lining costs that even with similar percentage growth, dollar growth online would be less than for TV

But eventually, online advertising growth will takeover, and all will be right in the world again. Of course, TV by then may be more interactive and be coming to us in many different ways.