Yes, Advertising Still Works!

Share of US ad spend by media typeI was having lunch with a friend this week, and she said it is,”a frigging mess out there now. There are so many media channels, and nobody knows how to make any money from advertising these days.” Jaded? That’s a possibility.

Furthermore, “I am not influenced by advertising anymore,” has been overheard by a few others most recently.  For those of us in the business of helping others with their outreach and marketing, this is heard more often than not these days.  We can only respond by pointing out that U.S. companies would not invest $79 billion (yes, that’s the size of TV’s ad market) in something they thought didn’t work.

Media commentator, Michael Goodman, posted earlier this year,

“Despite digital’s best efforts, the drop in traditional ad revenues means we’ll see fairly modest growth in overall U.S. ad revenues in 2015  & will have to wait for more significant growth in 2016, courtesy of the U.S. presidential elections and summer Olympics,” advertising on sites like Facebook and Twitter — will see the most growth at 31% this year, followed by video (29%) and mobile (20%). ”

Goodman continued, “Search — and Google — will this year continue to account for the biggest proportion of spend, at 45% of all digital ad revenues.”

Companies expect advertising to produce returns, just like any other investment. However, I think I know why some of my friends think advertising doesn’t work for them. I have a hunch my friends and your friends feel the same way.  Advertisers expect audiences to react immediately and do something quickly after seeing their ad.

But,  that’s not quite how advertising works. No one likes to think that they are influenced by what they see, read or hear. People have pride.  So, to make advertising work, successful marketing creates positive memories and feelings that influence our mindset over time to encourage us to buy something at a later date. In fact, there is plenty of evidence to suggest that we respond negatively to blatant attempts at persuasion.

What follows is from recent issues of Ad-Age:

Digital media [advertising] will reach 30% market share globally in 2015, according to Magna Global, and it’s on track to surpass TV revenue in the U.S. by 2017.  Ad revenue from digital media grew 17% to $142 billion this year, thanks to mobile campaigns and new social formats, Magna Global said. It’s expected to increase another 15% in 2015.

Other media categories weren’t so lucky, as they “suffered from the competition of television and digital in 2014,” according to the Magna Global report. Newspaper ad sales decreased 4.3% while magazines shrank 7.3%. Radio was flat while out-of-home media grew 3.4%.

Within digital, paid search is the number-one format with nearly half of all global dollars, followed by display (21%), social (12%) and video (8%). Mobile ad spending is expected to grow rapidly and represent a third of total digital revenues by 2016, according to the forecast.

The latest scoop on the future trends in advertising spending in moving forward, as noted by TechCrunch in early 2015.

 “By 2018, TV’s share of ad revenue will fall to 40% whilst digitals will have grown to 35%,” writes co-author, Leika Kawasaki. “However, TV’s declining share is less about ad dollars flowing out of TV and more about dollars flowing into digital from print and radio. TV networks such as ABC, NBC, MTV and the like will see little, if any, real decline in revenues, just a shift in the source from linear TV ads to online video.” Similarly, within the category of digital, we’ll see social media pulling away from the pack, widening its margin with mobile ads to take up $8.2 billion of spend, versus $7.4 billion for mobile ads.   Kawasaki calls print the “major casualty.” Although it will still bring in tens of billions of dollars — $20.3 billion — by the end of 2018, that is less than a third of its 2007 level.

Flatlands Avenue Productions creates podcasts and engages audiences on multiple platforms that are mobile phone/tablet and car dashboard ready. We are already built to engage your targeted audiences. We want you to advertise with us and let us help you craft your messages to reach the consumers and audiences of your choice.

We will keep telling great stories in hopes that American jobs,  American manufacturing, and American causes are still worthwhile, value added and can make a difference in lives through jobs here at home. At the end of the day, we just want help other’s who are in business, influence others for a common good.

Speaking of Advertising Age:  Check out the column about how all audiences, not just Millenials and Generation Z want to have experiences expressed in their advertising.

Great minds think alike.

It’s not just advertising. It’s podcasting. It’s why our less than six-month-old production, The Bonfires of Social Enterprise is now being downloaded in 60 countries and has been steadily growing in listenership. 

Yes, we will tell the stories, and we will help bring great story-tellers to you and help you develop your skills as storytellers.  

Just think about the advertising that you love to watch over and over or stop what you’re doing to listen to on the radio or stream. The Budweiser Clydesdale and the golden retriever puppy comes to mind. Podcasts that tell a story and tease you to keep you coming back; personal anecdotes of struggles and triumphs in business, life, love and sport; and parables that present teachable moments in an entertaining way

Flatlands Avenue Productions is here to tap into your urge and instinct to get your stories told.Flatlands Avenue

Advertising is one way of doing that. Podcasting is doing that.

If you would like to work with us and create a digital advertising campaign, please contact Debra Grobman via email: or via Phone at (323) 939-8253.  If you want to talk about hiring us to bring out the stories and storytellers in your organization, I’m available at, or via my mobile at 301.404.9609.

Rita Rich

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