Image: Telstar Logistics / some rights reserved
Some stark research in Gary Arndt’s excellent post for Tnooz a while back: Why do travel advertisers continue to avoid bloggers?
Former Morgan Stanley analysts and current partner at Kleiner Perkins Caufield & Byers, Mary Meeker estimates that 28 percent of all time with media is spent online, yet only 16 percent of advertising is spent on the internet. This disconnect between media consumption and ad spending is estimated to be $50 billion annually.
That $50 billion dollar disconnect falls most squarely on print, which gets 26% of all ad spending but only 12% of media consumption based on time. Television has only an 8% disconnect, whereas radio is in the same boat as the internet…
Top travel magazines such as Conde Nast Traveler, Travel + Leisure and National Geographic Traveler charge around $100,000 for a full page ad for a single issue….$100,000 for a single flip of a single page of a single issue of a single magazine…Taking into account the differences in audience size vs the difference in cost structures, there are efficiencies of 10 to 100 fold to be found in the blogosphere. I’m not talking even double or triple the benefits, but one or two orders of magnitude… The reality is, however, blogs aren’t even part of the conversation at this point.
It startles me that – within the Travel industry, anyway – this is still the case. It also toggles with one of the biggest truisms in media – when it comes to advertising and editorial development (read: budgets) the tail will usually wag the dog. Thus, according to the above, print sections within media organizations are going to have the lion’s share of budgets for some time yet, and bloggers will continue to feed off adsense scraps. Is it a case of waiting for the old-school advertising execs to retire before the paradigm changes? Do we really have to wait a whole generation for the ratios to shift? Or does this piece get it wrong – are the ad agencies shifting their focus quicker than the it suggests? I’m intrigued to know your thoughts.. especially anyone out there who works in advertising.