There continues to be a disparity between the advertising do…
There continues to be a disparity between the advertising dollars spent on reaching TV viewers and Internet users versus the amount of time that is spent interacting with each medium. A large degree of Google’s success is attributable to taking advantage of this large gap. Research to determine (a) TV advertising dollars and Internet advertising dollars spent, and (b) the amount of time spent watching TV versus using the Internet. How has Google taken advantage of this disparity? What other major societal trends are forecasted that will continue to shift advertising dollars to new media, and why? Your response should be at least 300 words, double-spaced. Provide references in APA format if necessary. The title page is not needed.
The disparity between advertising dollars spent on reaching TV viewers and Internet users versus the amount of time spent interacting with each medium is a well-documented phenomenon. Numerous studies have shown that although people are spending increasing amounts of time on the internet, the majority of advertising dollars are still being allocated to traditional TV advertising. This discrepancy between time spent and ad spend has created an opportunity for companies like Google to capitalize on the gap and fuel their success.
In terms of TV advertising dollars, the figures are staggering. According to a report by eMarketer, TV advertising spending in the United States reached $71.6 billion in 2019. This level of investment highlights the continued dominance of TV as an advertising medium. In contrast, internet advertising spending in the U.S. for the same year amounted to $129.3 billion, indicating a significant gap between the two mediums in terms of ad spend.
When it comes to time spent, the trend is shifting in favor of the internet. People are now spending more time online, whether it is browsing social media, watching videos, or shopping. According to a report by eMarketer, in 2019, U.S. adults were expected to spend an average of 3 hours and 43 minutes per day on mobile devices, compared to 3 hours and 35 minutes watching TV. This shift underlines the growing influence of the internet in people’s lives.
Google, being a dominant player in the online advertising industry, has successfully taken advantage of this disparity between time spent and ad spend. The company’s pay-per-click advertising model allows advertisers to reach their target audience directly based on their online behavior and search intent. By providing a more targeted and measurable advertising platform, Google has attracted both large and small businesses to invest their advertising dollars in online channels. Google’s robust advertising platform, AdWords, enables advertisers to create highly targeted campaigns and measure the effectiveness of their ads in real-time.
In addition to Google’s success, other major societal trends are forecasted to further shift advertising dollars to new media. The rapid growth of mobile devices and the increasing adoption of streaming services are reshaping the advertising landscape. With the rise of smartphones and tablets, people are consuming content on the go, creating opportunities for advertisers to reach them through mobile advertising. Streaming services, such as Netflix and Hulu, have gained significant popularity, leading to a decline in traditional TV viewership. Advertisers recognize this shift and are redirecting their budgets towards digital channels that offer a more captive and engaged audience.
Furthermore, the rise of social media and influencer marketing has revolutionized advertising strategies. Social media platforms, like Facebook and Instagram, provide a highly targeted advertising environment based on user demographics, interests, and behaviors. Additionally, influencer marketing has become a powerful tool for businesses to connect with their target audience authentically. By partnering with influencers who already have a loyal following, brands can achieve greater reach and engagement.
In conclusion, the disparity between ad spend on TV and the internet, despite the increasing amount of time people spend online, has allowed companies like Google to exploit this gap and thrive in the online advertising industry. The rise of mobile devices, streaming services, social media, and influencer marketing are key societal trends that are expected to continue shifting advertising dollars towards new media. Advertisers are recognizing the importance of reaching their target audience where they spend their time, and these trends provide opportunities for businesses to connect with consumers in more meaningful and impactful ways.