3 in 5 local TV advertisers say they expect their digital advertising spend to grow this year from 2010, according to [download page] a TVB survey conducted by Borrell Associates and released in November 2011. Data from the “First-Half 2011 SMB Advertisers Survey” indicates that this is double the proportion who said they expect their TV advertising to grow, and roughly triple those who expect an increase in radio and direct mail spending. Local newspapers and directories such as the Yellow Pages were targeted by most for cuts, with 32% of local TV advertisers expecting to shrink their spending this year in those categories.
SocNets and Email Important Channels
Among the local TV advertisers surveyed, about three-quarters engage in social network marketing and more than half use email marketing. However, only 26% say that social networks are the best source for new customers, while only 20% say email marketing is the most effective method of gaining new customers.
Meanwhile, local TV advertisers are almost three times as likely as local advertisers overall to use behavioral or targeted display ads (25% vs. 9%) and twice as likely to use banner and display ads (38% vs. 19%). 35% also use paid search, compared to 19% of local advertisers overall.
TV advertisers’ focus on paid search may prove beneficial: according to data released in October 2011 by CityGrid Media and Harris Interactive, nearly 6 in 10 US adults say search engines are the first place they go when researching a local business online. In comparison, only 8% say they first visit a merchant’s website, while 4% visit a reviews site.
Entertainment Leads Verticals in SocNet Adoption
64% of the local advertisers surveyed reported maintaining a social network site or page, led by those in the entertainment vertical (83%). The restaurant (76%), recreation (75%), travel/tourism (74%), and auto sales (73%) verticals also reported high levels of social media adoption, although just 26% of local advertisers surveyed in the finance category reported having a social media site.
Interest Grows in Mobile
According to the survey, 61% of local TV advertisers have been pitched by an advertiser to conduct a mobile-based campaign, although less than one-quarter report having conducted any mobile campaigns in the past year. This may be due to a lack of familiarity: only 44% say they are somewhat or very familiar with mobile options. Even so, almost half said they were somewhat or very likely to incorporate mobile elements into their advertising and marketing efforts this year, while close to one-third said they would increase their mobile advertising budgets.
About the Data: The TVB/Borrell Associates surveys were conducted between November 2010 and July 2011, and fielded more than 1,000 completed interviews that were meshed with Borrell’s ongoing SMB surveys of an additional 7,305 local advertisers to draw comparisons. Only businesses that actively pursue or have considered pursuing some type of paid advertising and marketing were included in the sample.