Monday, June 13, 2011

Infographic on How Advertising Dollars are Spent

Here is an interesting infographic from Mashable.com about how advertising dollars are split among internet, television, newspapers, radio, etc. The graphic shows, as Professor Kagan explained in the first session, that while internet spend is growing, television still makes up the vast majority of advertising dollars spent.

The infographic also shows how while internet revenue dipped during the recession, it has basically recovered and is expected to reach $28 billion in 2011.

In my opinion, the most interesting fact contained in the infographic relates the time consumers spend on a given medium to the dollars advertisers spend per hour. The graphic shows that for every hour consumers spend reading the newspaper, advertisers spend $0.53, but for every hour consumers spend on the internet and mobile, advertisers only spend $0.12 and only $0.01 respectively!

This last statistic regarding the amount spent on mobile advertising is staggering. There seems to be enormous room for growth in mobile advertising. However, it is hard to ignore the vast differences in physical size of medium. A newspaper's expansive surface area allows for tons of ads, but an iPhone screen can become cluttered extremely quickly. Similarly, frequently changing and moving mobile ads can be extremely disruptive. How will marketers increase mobile and internet spending without cluttering the page and overwhelming consumers? Or will the targeting of ads become so precise that it will be possible to spend much less than $0.53 per hour for the same results?

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