With the Internet being the fastest growing advertising platform, big companies are not participating like small and medium-sized companies are.
TNS Media Intelligence - CEO Steven Fredericks said that he thinks that the slower adoption of Internet advertising by the big companies is probably partly because their online results are producing beter than their traditional media dollars, and they are passsing the savings on by investing in traditional outlets. An odd response in my opinion.
It's like finding something that works great and costs less, so as a result, we go and spend the savings on something that doesn't do as well. Not good business.
Fredericks said: "If you look at the top 50, they actually increased the amount of money they spent on TV, I'm not sure what the reason for that is, but I think it may be that staying with traditional media is just an easier thing for them to do right now."
I do think it's habit, but I also think that the Hollywood spin machine is working overtime to keep as much of the ad spend directed toward television as they can. It's a strategy they're using until they can figure out if they can monetize the web advertising market better than they are now.
Big companies need to wake up though. To partake in a much smaller way in internet advertising because it's easier to keep on doing things like they've done isn't a smart way to do business.
For the first nine months of the year, the U.S. online advertising market has grown over $1 billion in comparison with 2005.
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