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11/10/2012 by

The Disproportional Ad Spend Of U.S. CMOs?

The U.S. has statistics and data in its DNA. At every NBA and MLB game the networks push many infographics to the big screen. So if marketing used to be an art and now is a science, how can we explain this disproportional ad spend of U.S. CMOs?

When looking at above 2011 U.S. ad spending vs. the consumer time spent, you might want to know why big advertisers and their CMOs forget about insights and decide to spend their budgets on emotions and legacy?

The charts shows us that TV, Web and Radio budgets are being aligned to the time that consumers happen to stick to these channels. The load-balancing seems pretty okay here.

The disproportional part starts when we are comparing Print budget (29%) vs. the time consumers spend in Print (6%). Is that due to the reach of Print? Or is it due to the high impact, conversion and ROI that Print offers CMOs?

Or, maybe the media managers at big brands do not consult their CMOs, could that be a reason? Or should media agencies claim a more important role in the value chain?

Maybe U.S. CMOs do base their ad spending decisions on habit, legacy and personal emotions?

Same disproportional gap we see at Mobile. Despite the fact that Mobile is the #2 sticky “medium” with 23% of consumer time spent, CMOs have answered consumer behaviour with a marginal 1% in ad spending.

Why would CMOs neglect Mobile, when consumers truly seem to care about it? Is it because 80% of the US brands still do not have a mobile site or App?

Strange, certainly if you have followed the massive explosion of mobile and know that Google, Facebook, Yahoo and many other giants are putting mobile at the heart of their business models.

Strange, undoubtedly consumers see mobile for as their next gateway to content, communities, brands, friends and commerce.

Maybe I use different mediatypes than the average CMO? But I have seen people across the world sleeping in tents or on the streets like refugees, just to be the first to get the new iPhone 5.

Now if you read any kind of news medium, you could have caught these insights, right? Really don’t need an agency strategist to tell you that?

So we’d love to read your thoughts on the disproportional media spend of U.S. CMOs. Are consumers really that difficult to reach or should brands step up our game?

For more advertising trends follow Igor Beuker on Twitter or grab our RSS Feed to be the first to know.


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