Commentary

Consumer Control of New Media Upsets Ad Balance

Consumer Control of New Media Upsets Ad Balance

According to BIGresearch's latest Simultaneous Media Usage Study of over 15,000 consumers, marketers in 2007 are faced with the new reality of a consumer controlled communication model, with the advent of the Time Magazine selection of "you" as the Person of the Year in 2006, and "the consumer" having been selected as the Agency of the Year by Ad Age.

Gary Drenik, President & CEO of BIGresearch, noted "The long awaited ascent of consumers as controllers of their media environment is apparent in several findings in the study and it's also disruptive to the age old media distribution model many advertisers have relied upon."

With media multitasking growing as consumers have less time and more media options, Joe Pilotta, VP, Research of BIGresearch, concludes that "The intermittent usage of media which occurs during simultaneous consumption creates a serious problem for marketers who rely on exposure to media models since the anticipated exposure is being shared with many other media options and may never occur."

Simultaneous Media Consumption

When:

% Who Use Other Media

Watching TV

67.9%

Listening to Radio

56.4%

Reading Newspapers

68.9%

Going Online

70.7%

Source: BIGresearch, 2007

The consumers in the survey don't seem to be on the same page as advertising expenditures. When asked which media most influence their purchase decision for various product categories, consumers' choices are rarely in line with advertisers expenditures, says the report

Top 5 Media Influences on Consumers Buying a Car

Purchase Influence

Consumers Influenced

Automotive Industry Ad Spend %

1. Word of Mouth

30.4%

NA

2. TV Broadcast

24.1%

47.1%

3. Read Article

21.3%

NA

4. Newspaper

20.2%

30.0%

5. Magazine

17.5%

11.3%

Source: Ad Age Domestic Spending by Category (2005) and BIGresearch, 2007

Top 5 Media Influences on Electronics Purchases

Purchase Influence

Consumers Influenced

Electronics/Home Furnishings Industry Ad Spend %

1. Word of Mouth

42.6%

NA

2. Read Article

34.1%

NA

3. TV Broadcast

32.3%

36.2%

4. Newspaper Inserts

32.0%

4.40%

5. In-Store Promo

27.2%

NA

Source: (Includes) Home Furnishings, Appliances and Electronics and BIGresearch, 2007

Pilotta notes that "...new media options such as online search, blogging, email, texting, video, streaming and social networks such as MySpace and Youtube have expanded the Word of Mouth universe and made traditional advertising less relevant for many."

The report finds that 94.2% of consumers regularly or occasionally give advice about products and services they purchased, and 90.8% regularly or occasionally seek advice about products and services before making a purchase.

For complimentary Top Line Findings, please visit BIGresearch here.

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