Advertising executives find Blogs riskier and less effective than Social Network sites
Survey of Industry Leaders on Digital Media Trends, released today by
the American Advertising Federation (AAF), reveals that while there is
strong belief among industry leaders in the effectiveness of digital
marketing, there is lesser confidence in Fortune 500 companies' ability to
capitalize on online advertising. 63% that Fortune 500 companies are
"generally behind the curve when it comes to online ad
strategy." There is also a wariness of advertising executives
regarding their own ability to keep pace with the changing digital
environment. 58% said that they personally are "struggling simply to
manage existing online efforts, let alone stay ahead of the curve."
Advertising executives find blogs a riskier, less effective advertising vehicle than user-generated content sites such as MySpace, YouTube, Facebook, etc. 62% stated that "blogs are too risky to advertise with due to lack of predictability of the editorial content," while only 53% agreed with the same statement about user-generated content. Despite these concerns, an overwhelming majority said advertisers "should exploit the viral marketing opportunities" of user-generated sites and, to a lesser degree, blogs.
An overwhelming majority of those
surveyed recognize the effectiveness of digital marketing, with 91%
citing the online media environment as "empowering to
advertisers, allowing the ad industry to shape its own
Digital media's high ROI was also recognized by those surveyed, with 73% seeing digital media as providing more ROI than traditional media. 42% cited paid search ads as having the highest ROI, 24% for dedicated or other email ads, 16% for rich media ads, and 9% for display ads
The survey, prepared by Atlantic Media
Company, yielded additional findings of interest:
The AAF Survey of Industry Leaders on Digital Media Trends was released on the opening day of the AAF National Conference 2006 in San Francisco and surveyed 140 advertising industry leaders, spread across agency (23 percent), media (28 percent), client (7 percent) and other (22 percent, composed mostly of consultants and researchers) sectors. Sixty percent have worked in the advertising industry for more than 15 years, with 30 percent for 25-plus years.