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What we're seeing in advertising these days is an eye opener for most of us. The bad news is that according to the Kelsey Group and BIA Advisory Services, there will be a smaller local advertising market in 2013 than there was in 2008. 

Here’s what it looks like: "By the end of the forecast period, the overall size of the local advertising market will be considerably smaller than it was at the end of 2008," said Tom Buono of BIA. 

The firms predict a compound annual -1.4% overall growth rate, with the largest drop-off in local ad spending occurring in 2009.

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Spending on traditional local media is forecast to fall from $141.3 billion in 2008 to barely over $112 in 2013. In 2009, nearly 12% of local ad spending will be digital, with dollars focused on Internet yellow pages, local search, e-mail marketing and other online tactics.

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In 2013, the digital share will jump to over 22%, and might grow even higher.

“The share shift we expect

[between traditional and digital] could actually be more pronounced if the major traditional media are not able to integrate new interactive products into their bundle,” said Neal Polachek of Kelsey. Although it may not look like a huge growth it is obvious that it continues to grow. It will continue to get bigger and he who gets on the proverbial bandwagon will know how to do it and will refine how they do it.

What does it mean for you?

  • Start collecting emails, get them from your friends, your business buddies, your leads club, the Chamber of Commerce—just get them and start using them. Consider using video email to contact them; this will put you up in front of the pack.
  • How about a video newsletter, or video tips? Anything you can do with email can be done better and quicker with video.
  • Pick the best of \social networking to make your connections. There is "no right or wrong" — there just is. The benchmarking has yet to be set. Develop a social networking club, a face-to-face one and start talking about what might work. 
  • Read what’s out there. eMarketer is a great site with very useful information. Conversation Agent is another site with lots of information about the web and what’s happening. Don’t forget the Google feeds about the Internet. Blogging is the way to build a network of people who want to follow you online. Check out Remarkablogger for more info on blogging.

Consider what Hubspot is saying about how advertising has changed as well:

  1. Don't Depend on Advertising – It will usually be more expensive than other inbound marketing channels. More importantly, advertising isn't a scalable way to build your business. Your costs increase with the size of the audience you're trying to reach.
  2. Make Sure Your Ads Are Useful – If you do use advertising, make sure it's useful. Don't interrupt people, provide them with something that can help them do their job better.
  3. Make Sure Your Advertising Campaign Is Cost-Effective – Know how it compares to your other channels. Don't pour money into an ad campaign where customer acquisitions cost 10 times more than your alternative channels.

Want help? Call me at 518-495-5380 or e-mail lcalandrino@nycap.rr.com.

"The practice of advertising, however, is evolving. Instead of interrupting potential customers when they're not interested, smart advertisers are running campaigns that provide useful information to potential customers." – Doc Searls

Resources:

eMarketer – Internet Marketing Trends
Hubspot  – Internet Marketing Blog

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