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TNS Media Intelligence: G5 is Right - Advertising is shifting Online

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Well, we have to admit. That's not an exact quote. But it's also not too far off.

For several years now, Dan Hobin, our venerable CEO, has spoken of "the shift from off-line to online" when it comes to advertising. It seems that the industry is finally starting to see what he's been talking about all this time.

Today, MediaPost published an article quoting a report by advertising economist Jon Swallen - a senior vice president of research at TNS Media Intelligence.

"Some of what we are seeing continues to reflect that shift from traditional to digital media," said Swallen, who has been closely monitoring which factors have been contributing to the slow growth on Madison Avenue. Last week, Swallen released an analysis of first-quarter 2008 ad spending across the major media, which showed a relatively tepid growth of just 0.6%.

And MediaPost and Swallen explain just why spending is moving online. Just like Hobin has said, it's all about efficiency: "Meanwhile, Swallen said marketers have begun adjusting how and where they spend those constrained marketing dollars, with more going toward more efficient digital media--especially things like online search--and to unmeasured forms of media that are dampening the inflation of historically high-priced traditional media. In fact, the major TV networks are crowing that they managed to preserve the volume of advertising commitments in the recently completed 2008-09 prime-time upfront advertising marketplace. But they only managed to do so by packaging more inventory--including some high-demand online video advertising--into the mix they sold to advertisers to get to those levels."

So what does all this mean? Simple. As advertisers see they can spend less for better results online, the shift will continue.

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