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nMedia is the forum where CEOs from newmedia companies meet the global advertisingand media establishment. In preparation for thisone-of-a-kind event, we wanted to find out howhe forces of new media have affected the market-ing, media, branding, advertising, and public relations industries.Following are the results of a survey we conducted of more than200 of your peers in the media industry.We asked what would be the most disruptive forces in media.The results were quite diverse, with 49% of respondents identify-ing the pullback of available ad dollars as the greatest disruption,40% said the emergence of mobile devices as personal computers,and 38% felt the reduction of old media through bankruptcies andclosures have the most impact on the media industry today.The economy is also clearly having an impact on advertising,and the impact is being felt by new media and old media compa-nies alike. In fact, this year, 75% of the respondents see advertisersmoving more than 25% of their dollars and time away from tradi-tional channels. While this number is high, it actually reflects asignificant drop from the almost 90% response in last year’s sur-vey. Seventy-one percent of respondents see the recent new mediaacquisitions by established media companies making money inless than five years.Social networking is clearly an important force in the mediaindustry, and the participants in the survey see progress in adver-tisers planning for the use of it. Last year, 48% felt advertisingagencies lacked a plan to leverage social networking for theirclients. That number is down to 42% this year. The likely usesfor social networking for business include creating a new brandimage, attracting new customers, and launching new products.Investment in new media opportunities will come primarilyfrom the venture capital firms, according to 57% of the respon-dents. That is up from 51% in last year’s results. The best ventureinvestment would be niche media companies (39%) or interactivemarketing companies (30%).We look forward to sharing the full results of the KPMG/AlwaysOn survey at OnMedia, February 2–4, in New York City.The presentation will also be available online at www.alwayson-network.com.
Brian Hughes
is a partner with the Philadelphia office of KPMGLLP (www.kpmg.com) and is the co-leader of the Venture Capital Prac-tice—Eastern Area. Brian can be reached at bfhughes@kpmg.com.
New Media Grows Up
The AlwaysOn & KPMG Survey
Madison Avenue taps the value of online innovation.
1:
What are the two most disruptive forces in media today?(Choose two.)
General
3:
How long will it take for the old-media acquisitions of new-media companies to pay off in revenue growth?
2:
Over the next 5 years, what percentage of media timeand spending will move away from traditional channels?
6
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ALWAYSON
|ONMEDIA NYC 2009
9%7%40%8%
The pullback of ad dollars
Smartphones' potential for location-targtedontent, advertising, and marktin The thinning of “old media”(bankruptcies and closures) The failure of social networksto monetize as expected
The mobile device becoming a personal computer
Internet penetration opening upnew global markets
10% 0% 30% 40% 50%
25%38%25%7%0%
-25%
26-50%
51-75%76-100%
10% 20% 30% 40 50% 60%
8%%7%40%
1-2 yars2-3 yars
-5 years
5 yarsNever
0 10% 20% 3 % 40% 5 %
9%
%
0 10% 20% 30% 40% 50%
Site visitsClick-throughs
Qualified prospects/sales opportunities
Captured sales revenue
11%44%14%31%
8:
Which of the following online-advertising tactics providesthe best return on investment:
9:
Is the return in line with traditional advertising channels?
11:
How will CPM trend in the next two years?
6:
What percentage of ad agencies have a plan to leveragesocial networking for their clients?
7:
What are advertisers and agencies going to use socialnetworking for?
10:
What form of online advertising is most effective?
ONMEDIA NYC 2009|
ALWAYSON
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7
4:
Will social networks ever become profitable fromadvertising?
58%32%
Yes:in time they'll figure it out
No: online chatting doesn't lead to shopping Maybe: only if ads becomemore creative
0 10% 20% 30% 40% 50% 60%
11%
47%19%
Social networks canpowerfully grab mindsharein society at large
Online networks can successfullydrive micro-paymentsto equal big bucksBusinesses will seemy.barackobama.comas a model for creating savvyin-house networks and wikis
0 10% 20% 30% 40% 50%
34%
0-10%
11-20%
21-30%31-40%41-50%More than 50%
0 5% 10% 15% 20% 25%
18%24%19%14%9%16%
0 10% 20% 30% 40% 50% 60% 70% 80%
Attract new customers
Create new brand image
New product launchDirect salesNothing
54%54%72%35%5%
58%42%
Yes
No
0 10% 20% 30% 40% 50% 60%0 10% 20% 30% 40% 50%
Search engine
Banner adsEmail advertising Online partnershipsInteractiveOther
11%6%5%47%10%21%
0 10% 20% 30% 40% 50%
Increase
Decrease
No change
39%19%41%
OnlineAdvertisingSocialNetworking/Web 2.0
5:
What's the biggest lesson from the 2008 presidentialelection's use of social media?
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