Professional Documents
Culture Documents
November 2006
Survey Highlights
• Most leading ad executives expect a significant portion of broadcast and cable TV ad dollars to shift to online video by
2010, with 33 percent of respondents predicting that switch will be between 10 and 19 percent. In addition, 2007 budgets
for online advertising are expected to rise by an average of 42 percent over 2006.
• As to the challenge of integrating traditional with online media, broadcast TV is seen as offering the “most innovative”
integration with online media, while magazines are seen as “most effective” for driving consumers online.
• Ad industry leaders utilize a range of online ad targeting, but over half find behavioral targeting to be among the “most
effective” methodology.
• Search was deemed the “most effective” new media option and, not surprisingly, is expected to take the greatest share of
the 2007 media budget.
• Industry leaders feel strongly (71 percent) that the online medium is “very effective” or “most effective” for direct
response advertising, but note that there is difficulty reaching key demographics, particularly older audiences, online.
• Industry leaders rated Dove, Burger King, Volkswagen, Honda and Nike as the most successful recent integrated
advertising campaigns.
• Nearly 63 percent of those surveyed perceive the demands of the advertising industry to be “higher” or “much higher”
than those of other industries.
• In sharp contrast to findings of the past two years, leaders predict strong growth and recovery for careers in advertising,
with overall career appeal cited as the healthiest category.
• The majority of industry leaders cite mentorship as important to their personal career success and a record 42 percent
“always” mentor young professionals, a 68 percent increase over last year.
• The top campaigns of the year were (in order) Apple Mac and Geico (two-way tie); Dove; Budweiser, Target, Mini
Cooper (three-way tie); Apple iPod; and Aflac Insurance.
• Top brands are (in order) Coca-Cola, Nike, Apple, Starbucks and McDonald’s.
• The most respected industry leader was David Ogilvy, followed by Bill Bernbach and Lee Clow.
• The most important factor in achieving success in the industry is “dedication.”
2
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Respondent Profile
One hundred and sixty eight leaders from across all sectors of the advertising industry responded to the survey; over 58% have
worked in advertising for 16+ years.
Agency
31.7%
34.9%
Advertiser/
Client
6%
Media 23.5%
15%
14.5%
Academia/
12%
Research
9.6%
25.7% Other
21.6% 5.4%
Consultants
Public Relations
Trade Associations 1-3 4-6 7-10 11-15 16-24 25+
3
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Anticipated Shift of TV Advertising Dollars to Online Video
A significant share of TV advertising dollars is expected to shift to online video by 2010; as online video advertising grows
increasingly sophisticated, advertising leaders anticipate an even more dramatic shift in the future.
4
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Online Advertising Comprises a Growing Portion of Media Budgets
The percentage of media budgets allocated to online advertising is expected to rise by 42% in 2007 to an average of 23.2%.
6
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Volatility In Allocation of Media Budgets
At best, TV can still command an average of 50% of media budgets, but allocations could fall as low as 29% on average;
meanwhile, online advertising could see as much as a 24% share.
24%
20.4%
18.3%
16.8%
14.1% 13.7%
11.8% 11.4% 11.5% 11.5%
7.9% 8.2%
5.6%
7
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Assessing Options for Online Ad Targeting
Ad industry leaders utilize a range of online ad targeting methodologies, but over half find behavioral targeting to be among the
most effective.
Contextual 30.5%
Behavioral 52.4%
Other 4.9%
8
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
What Is Online Advertising Good For?
Industry leaders feel strongly (71%) that the online medium is “very effective” or “most effective” for direct response advertising;
while online is considered a less effective medium for brand advertising, executives still overwhelmingly feel that it is at least
“somewhat” effective.
9
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Experimenting With New Online Media
Industry leaders are starting to experiment with new media like blogs and podcasts, but search advertising still dominates.
34%
Online Video
Podcasts 8.0% 6%
8%
Social RSS
7.7% 3%
Networking
21%
RSS 5.5% Podcasts
2%
Thoughts on 15%
Mobile 5.2% New Media Mobile
5%
“The adoption rate for some
of these new avenues is 20%
Video Games 3.6% Video Games
surprising fast. We are 3%
continually amazed at how
quickly they catch on,
especially with younger Most Effective Very Effective
consumers.” 10
- Agency Exec Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Media Integration Efforts Connect New and Old Media
As to the challenge of integrating traditional with online media, broadcast TV is seen as offering the “most innovative”
integration with online media, while magazines are seen as “most effective” for driving consumers online.
26%
“Greatest Growth Potential: Online
Media. Lag Behind: Newspapers”
- Agency Exec
21.7% Direct marketing
18.5% 18.5% Telephone book “The greatest potential growth lies in
17.8%
Jingles the integration of TV broadcast with
16.4%
15.2% Internet promotions and activities…
13.7%
Radio stands to be the media with the
11% most challenges.”
8.7% 8.7% 8.2% 8.7% - Academic
6.8%
“Out of home has the most potential
because it is so dynamic. New uses
and opportunities are being discovered
daily. Newspapers will lag behind most
because of the downward trend of
er
e
o
es
TV
s
readership.”
om
er
th
tT
ad
in
ap
O
e
H
az
R
as
- Academic
ab
sp
of
ag
dc
C
ew
ut
M
oa
Direct mail
O
N
Br
11
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
What Were The Most Successful Recent Integrated Campaigns?
Select Responses to an open-ended question.
1. Dove
Saturn Acura Cadillac
2. Burger King
American Airlines Brawny Paper Towels
3. Volkswagen
4. Honda Yahoo Tower Records
5. Nike
Wendy's Monster.com
IKEA Careerbuilder
Apple Wal-Mart
12
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Getting a Hold on The Challenges of New Media
Industry leaders are open to a number of different ways to get up the curve on new media; a majority of respondents (56.8%)
thought case studies would be helpful learning resources.
56.8%
41.9% 40.5%
37.8%
Clients
Focus groups of
online users
Industry samples
4.1%
13
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Strong Growth and Recovery Seen For Careers in Advertising
After two years of cautious assessments of career opportunities in advertising, industry leaders showed a more optimistic
perspective in 2006; metrics in all three categories rebounded substantially from last year.
3.0 2004
Attracting and retaining 2005
3.1
talent
2006
3.91
3.4
Long-term career
3.1
prospects
3.54
3.5
4.06
14
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
What are the Strengths and Weaknesses of the Advertising Industry?
Selected responses to an open-ended question.
Direction of the Industry “Strengths: Good quality creative, humor and information blended together.
Weakness: The ‘chew ‘em up, spit ‘em out’ mentality that agencies have.
“The clients will take control of creating
People work one place 1-2 years as a maximum.”
their brand and communication
- Media Exec
strategies in order to control
integration consistency. There will be “Strengths: Still offers excitement, responsibility (and fun) faster than other
no more advertising generalists. businesses.
People must become specialists and Weakness: Instability, insane account and personnel turnover, decimation
act as a much larger team. A new kind of middle aged exec ranks which has sent a terrible message to young up
of leadership will require far more and comers.”
collaboration.” - Consultant
- Consultant
“Strengths are in the wide ranging opportunities replacing traditional media
“Younger employees are encouraged and message development. A weakness is that the industry is slow in
by the success of smaller "upstart" making the transition to new media.”
agencies. On the other end of the - Academic
scale, the giant agencies are viewed
“Strengths: Creativity, fun, "glamour."
as dinosaurs and the mega holding
company business model appears to Weaknesses: Instability, competitiveness, managing/keeping up with the
be broken forever. I believe the growth changing media landscape.”
in our industry will be with smaller, - Association
more creative and entrepreneurial “I think the opportunity for creative and innovative work are still the
independent shops.” strengths that draw interested people to the field. A weakness could be a lot
- Agency Exec of the negative press toward the advertising career field over the past five
years or so.”
- Academic
15
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
Industry Leaders Feel The Benefits of Past Mentorship…
Over 85% of industry leaders said that being mentored was at least “important” in their own personal career success (compared to
81% in 2005); significantly, no one who was mentored felt that the experience “was not very important.”
16
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
… And Return the Favor By Guiding Today’s Industry Newcomers
Today’s industry leaders work to pass on their own knowledge as a record 42.1% “always” mentor young professionals, a 68%
increase over last year; additionally, zero respondents “never” mentor others.
46%
42%
37%
25% 25%
2005 2006
17%
3% 4%
1% 0%
17
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
The Continued Strain Of A Demanding Industry
Industry leaders struggle to balance their professional and personal lives; 62.6% felt that the demands of the advertising industry
are “higher” or “much higher” than those of other industries.
52%
41%
34% 35%
21%
14%
3%
0%
2005 2006
18
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
No Shortage of Important Attributes For Success
20
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends
The Best of Advertising’s Best
1. Coca-Cola
Dr. Arnold Barban Rupert Murdoch
2. Nike
David Bell (2) David Ogilvy (6)
21
Source: 2006 AAF Survey of Industry Leaders on Advertising Industry and New Media Trends