Summary: More and more companies are switching their advertising plans to the digital world and moving away from television because of the price for TV.
Digital advertising is starting to overrun traditional television advertising. More and more companies are beginning to advertise with Google on YouTube, according to a report from The Chicago Tribune.
Mondelez International, a snack food giant, recently joined Allstate as major companies using digital advertising.
The United States television advertising market is worth $78 billion right now, but that number could drop as money follows viewers onto the internet.
The vice president of global media and consumer engagement for Mondelez, Bonin Bough, said the following:
“Consumers are consuming more online video year over year, and they’re consuming more content year over year. It’s very difficult to feed that voracious appetite with the current economics that we have around video content creation.”
Mondelez said that its agreement with Google is part of its larger strategy to shift 10 percent of its advertising budget to online video.
YouTube has approximately 20 percent of the United States online video advertising market right now. The company, which is owned by Google, could have revenue of $1.13 billion this year.
In the country, spending on digital video ads has increased by 56 percent in 2014.
Increasing the spending on digital advertising affects more than just the television advertising budget for Mondelez.
“It’s sourced from across the media mix,” Bough said. “We’re continuing to focus on measurement and look at those things that aren’t delivering, and shifting that to this vehicle that is delivering.”
“This is no longer a world of TV versus online video,” Bough continued. “We see this as a world of video. We’re reaching more people, we’re doing it more efficiently, and it’s driving greater return.”
The sandwich chain Quiznos has removed itself from television advertising and moved solely into digital videos on the internet.
“We haven’t spent any money on TV in 2014, and we’ve definitely upped the amount we’re spending on digital,” said Chris Ruszkowski, vice president of advertising and marketing for Quiznos.
“TV is really expensive,” Ruszkowski said.
If you’re looking for jobs in the advertisement industry, click here.More and More Companies Moving to Digital Advertising by Harrison Barnes