Intel announced last year that it would be following customers online and shifting budget away from traditional marketing. They were applying this to 3rd party co-op programmes too.

It appears that this year upto 80% of above the line ad money will be going online.

The latest figures show the continuing decline of newspaper revenues. They make painful reading (thanks for link to Podcasting News)

A posting by Jackie Huba shows how some US based companies are engaging with customers (and non-customers) to create video advertising to use online. While the number of participants is low (to be expected as it takes time to script, rehearse, light and record a video and then edit it, add music etc) the quality and creative vision can be high. It is also a fantastic 'snap shot' for the company product marketers to see what sort of 'relationship' people are exploring with the brand. Another bonus for the company is that the whole prize and promotion costs could well be less than employing a professional marketing agency do the same job.

Whilst only a few hundred may actively participate in the competition many more will view the shortlisted entries or winners. That could create quite a buzz.

The March ABC figures will make grim reading for owners but also advertisers and media buyers who track these things.

The big question....

'Where is the audience going to get information and how can I ensure I get my message across to them?'

The answer is online - through social media sites, social networks and tools.

I have contributed to those ABC figures. Until a couple of years ago I got two dailies, a couple on Sunday and watched the evening news most nights. I then started to get information via the BBC and Google news alerts on the internet. I stopped having the papers delivered and only occasionally bought them when commuting to a meeting by train or flying. I stopped watching the news every evening and reduced to a single Sunday newspaper.

Today I regularly read a number of blogs and through them get access to news stories I do not always pick-up myself. I use Google Alerts and other online news services to keep informed. I still often, but not always, get a Sunday newspaper as much for the exercise of walking (and carrying it back with all the inserts and supplements - almost as good as going to the gym!) I usually only read a couple of sections and so feel a bit guilty about so much being re-cycled without even being read. I am not an eco-warrior but I have thought about the environmental cost of printing and physically distributing newsprint especially when I fail to read big sections. But on the other hand using a PC to access the internet costs too. It then becomes a highly complex argument to see what is environmentally kinder. I cannot even factor in having the pleasure of Sunday breakfast in bed and reading the newspaper as I have wireless broadband so I can have my breakfast online too. 

There must be many other people out there like me. The challenge for advertisers and their agencies is how to engage me online as that is where I spend a lot of my time and take a lot of my content.

After my post the other day about the continued decline of traditional media adevertising and the rise and rise of online media comes the news that Google is buying DoubleClick for £3.1b. (See also BBC online report)

Microsoft, Google and others have been looking at DoubleClick since they announced they were 'looking at their options'. The current private equity owners of DoubleClick had put a price tag of £2b+ so Google has paid a hefty premium but in return they get an end-to-end solution for online advertising.

Google through its search engine and YouTube social media site have a massive 'audience' that they can deliver contextual advertising to. Narrowcasting or permission based marketing is what is at the heart of the decline of traditional advertising. Broadcasters and traditional print media are seeing audiences decline in the face of other forms of delivery anyway (satelite, cable and internet) but in addition 'interrupt' marketing is having less and less impact. The future growth opportunity is in highly targeted and relevant advertising and marketing. If you are in a position to understand the content being delivered (as Google does) you can provide a great service to advertisers. With DoubleClick this becomes even better.

That's what the premium is worth!

At the National Union of Journalists annual conference a vote was passed to hold a national strike on November 5^th to protest about the cuts and changes being faces in the media. (See Press Gazette for more information -

http://www.pressgazette.co.uk/article/130407/jeremy_dear_nuj_journalism)

There was also a motion both condemning the loss of UK based journalists jobs through outsourcing but also supporting improved rights for those overseas outsourced journalists. A real dilemma for delegates and the Unions. (see Press Gazette for details -

http://www.pressgazette.co.uk/article/130407/nuj_reuters_mirror_outsourcing)

As to be expected the downturn in fortunes for print media as readership and advertising declines is having an impact through ‘downsizing’.

To understand the issues facing traditional media you just have to read what was said by the Guardian Unlimited blog editor, Kevin Anderson,  at the Guardian Changing Media Summit. Kevin said that ‘..newspapers are in denial about how they have to get online’. He also rejected the automatic use of celebrities and well know journalists saying ‘I would much rather editors have someone...who can make a real connection with readers’. He warned against using celebrities or well-know journalists as a blogger.

Alan Rusbridger, Guardian editor, predicted that more content would be citizen generated and the best journalists should be working out ways to engage with citizen journalists. .

The Internet Advertising Bureau recently released figures for 2006. It showed that whilst ad spend on traditional media declined, online spending grew by over 40%.

Online now accounts for over £2b or 11.4% of total ad spending. This means it has overtaken print media and is second only to TV which had spending of £3.9b.

Looking at the figures and extrapolating the continued decline in TV and the increase of online (even at a reduced rate of 20%) it can only be a matter of 24 months or so before online will be number one.

The reasons in my view:

• Broadband usage is increasing both in coverage and speed.
• People, especially those under 35, are taking more content via the internet rather than traditional media.
• Active content generation and contribution is replacing passive consumption so readers are moving to internet based social media sources (blogs and podcasts) for stories and news (Whilst a low percentage will post stories as citizen journalists or even comments many more people actively read the comments and pass on stories and information to 3rd parties)
• Age barriers on using the internet is declining as software and PCs become easier to use and the IT educated generation grows older (PC adoption grew rapidly in the 1980’s. People who were then 25+ are now in their 50s and comfortable with technology)
• The internet provides a rich platform to consume information at a single point of delivery (people can watch video, listen to audio and read blogs and search engine delivered articles all at one location) 

Watch the video presentation of the report

Just back from a walk in the woods to collect holly and ivy. Christmas carols playing, we are now decorating the house to make it welcoming for friends and family next week.

This traditional approach contrasts with the modern way we are approaching shopping this year.

For the first time we have bought most of our presents online. It’s not that we dislike the experience of going out shopping. Far from it. We do. But at this time of year you face increasing traffic congestion, jams and hard to find parking spaces.

So what are we doing? Amazon gets our custom for books, DVD’s, PC games and some electronic goodies. Other specialist sites will be getting our custom too this year. We use customer and magazine reviews to help narrow choices and then look at what places have good deals and availability. Car parking fees and the cost of petrol now matches or exceeds the price of postage and packing when buying online so it is a financially neutral decision.

The power of search engines, online stores and payment was highlighted just before we went for our walk.

Someone said they wanted a bow and arrow for their Christmas present! Now that was a totally new one on us. Where do you go for this? Traditionally I would have looked in Yellow Pages and possibly driven miles to find a specialist site or even given up and got socks, DVD and books!

The solution. Google it! (Note: Now Google is officially a verb as defined by the Oxford English Dictionary as at June 2006) Result? Lists of shops and information sites all over the country. The second shop we looked at had a great web site and a phone number to ring. In three rings it was answered – not by a call centre but someone working in the shop itself. Small and specialist it was using a web site to increase its visibility and presence. Rather than simply sell us one of the kits they had on offer they talked us through all the options. This involved talking about the physical characteristics of the person we were buying the present for. This impacts the size of the bow and arrows and weight of pull. A new world of archery technology for us novices! Using the web site pictures they guided us through everything we needed. Within 5 minutes the order was placed, money paid and shipping arranged. We know one person who will be really happy this year – even if a little short on socks compared to normal.

Now for the Christmas dinner food and drink. Can we Google that?