I am going to be attending the iMedia conference in October in Nevada and plan to host a round table where I would like to discuss the fact that the digital spend of advertisers continues to either stay flat or grow very little while the consumers usage of digital mediums grows and is WELL beyond the 5% digital budget allocation. My point is that we go to these conferences and here the positive spin on this and I think it is time we speak more frankly about what the hell is going on! When I was at Chrysler, we had our digital budgets near 10% and that was 5 years ago. (see http://adage.com/article?article_id=105108) I have some theories about why clients and their agencies don’t allocate more spending to digital including:
1. comfort with what they know…TV
2. lack of control over the content on the internet
3. fear of the unknown: while there are a couple hundred TV stations there are a myriad of sites so the idea of choosing both the content and where to place it can feel daunting and challenging in terms of optimization.
4. digital fragmentation: the digital budget (versus the TV or print budgets, etc) gets tapped for social media efforts, mobile efforts, and sometimes digital OOH as well.
I’d love to hear your thoughts as well.