Media and advertising professionals say the pullback of ad dollars
and mobile devices becoming personal computers are the most disruptive
forces in media today, according to a recent survey by KPMG LLP, the
U.S. audit, tax and advisory firm.
With media time and spending seen
moving away from traditional channels, attention to social media and
mobile consumption is expected to increase.
In polling more than 200 media, marketing and advertising
executives, KPMG found that 49 percent of respondents indicated that
the pullback of advertising dollars is the most disruptive force in
media today, followed closely by mobile devices becoming personal
computers (40 percent). KPMG conducted the survey in collaboration with
AlwaysOn, the venture capital new media organization.
The KPMG survey also found that some 75 percent of executives
predict that advertisers will move more than a quarter of media time
and spending away from traditional channels in the next five years,
while social networks and mobile marketing are expected to see
increased activity.
In fact, 47 percent of respondents indicate that
the biggest lesson learned from President Obama's use of social media
while campaigning is that social networks can powerfully grab mindshare
in society at large. While the marketing and branding power of social
networking is expected to be increasingly harnessed in the future, 61
percent of executives indicate that fewer than 30 percent of ad
agencies have a plan in place to leverage the medium for their clients.
"The rapid evolution of new media channels, coupled with the
economy's downward impact on marketing and advertising budgets, is
creating opportunities for brand execs to develop a new formula in
reaching consumers," said
and Co-Leader of the Venture Capital Practice. "These execs realize
that they must properly blend all forms of media at their disposal,
including the growing social media and mobile device platforms."
With regard to mobile marketing, KPMG found that 65 percent of
executives say media companies currently adapt less than a quarter of
their content for mobile consumption, while 27 percent believe the
current content adaptation rate is between 26 and 50 percent. However,
87 percent of respondents say media companies will move more content
for mobile consumption in the next two years.
The greatest marketing opportunity for mobile is location-based
advertising, according to 48 percent of respondent to the KPMG survey.
Games and video are also seen as opportunities, each receiving 14
percent of the vote. The majority of investment in mobile applications
is expected to come from venture capital, and the monetization of those
applications is expected to come by way of advertising.
"Social networking and mobile marketing are just two of the
relatively new media forms to enter the marketing mix, but they are
already showing just how integral they will be in the near future,"
continued KPMG's Hughes. "Not only will these new forms of media
continue to see increased utilization by marketers and advertisers in
the near future, but they will continue to capture increasing attention
from the investment community."
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.us.kpmg.com), is the U.S.
member firm of KPMG International. KPMG International's member firms
have 137,000 professionals, including more than 7,600 partners, in 144
countries.