November 11, 2009 11:31 ET

Media mix changing for Canadian marketers according to Ipsos Reid po

Print, radio and TV continue to be casualties as marketers shift spending to new frontiers

Attention: Business/Financial Editor, News Editor, Tech/Telecomm Editor TORONTO, ON--(Marketwire - Nov. 11, 2009) - Toronto, ON - The change in advertising spending patterns in Canada continues, according to a new Ipsos Reid poll released today. In fact, when asked to assess the pace of change in the media mix over the past two years, 92 per cent of respondents (marketers) and 88 per cent of respondents (agency management) indicated that virtually everything has changed.

The study, conducted in collaboration with Canadian Marketing Association (CMA) and Marketing and released on the eve of Marketing Week 2009, reveals that increases in mobile, email and online at the expense of traditional media such as print, radio and TV are partly due to the impact of the recession, which has created new spending patterns using limited media dollars, a belief that customer relationships can be built online, continued interest from senior marketing management, and the rapid concurrent development and proliferation of digital technologies.

"The recession has, in fact, been good to digital marketers because it has challenged inertia and forced change through increased accountability across mediums," comments Adrian Capobianco, Marketing Week co-chair and president of Quizative Inc. "It also clearly shows dollars are shifting in favour of digital."


Who are the losers in the battle for digital dollars?
Assuming that total marketing budgets remain the same for 2010, responses from marketing and agency directors alike suggest that adjustments in 'spend' across different media will result in the continued downward trend for print (41 per cent decrease, net change -32 per cent), radio (26 per cent decrease, net change -15 per cent) and television (22 per cent decrease, net change -12 per cent), with stagnant growth in out-of-home digital (14 per cent decrease, net change -2 per cent) and direct mail (23 per cent decrease, net change 0 per cent).

"It would appear that ad revenue losses experienced by television networks may not rebound even after confidence and spending return to consumers," says Steve Levy, president of Ipsos Reid in Toronto. Since 2007 an increasing proportion of marketers have indicated that their spending on television will decrease over the next two years. This has moved from 27 per cent of marketers in 2007 to 42 per cent in 2009, up a whopping 15 points in just three years. "This is clearly a function of much more than an economic recession," Mr. Levy continues.

And the winners are…
At the other end of the scales, the study suggests that online media, email and mobile media will benefit the most as dollars are shifted into their categories. Eighty-one per cent of respondents believed online media would increase; 63 per cent believed email would rise and 49 per cent believed mobile marketing would increase.

The survey of agency and marketing professionals, which has tracked opinions as far back as 2006, also shows that digital marketing continues to gain momentum with growth in usage of email, search, and social marketing.


What are the main drivers of this change?
Many observers of the shift in media dollars to digital might be quick to assume that the recession is driving this change. While there is some truth to this (38 per cent of marketers agree this is the case, only 21 per cent agreed in 2008), the survey results suggest that assumption would be too simplistic. In fact, audience and/or client needs came out on top followed by marketing budgets and new technology itself. Other factors cited included changing media habits, increased knowledge and ROI and/or better measurement tools.

Underlying all of this is a strengthening recognition that strong customer relationships can be created on the Internet as attested to by 60 per cent of respondents in 2008 and 64 per cent in 2009.

"Because of the shifting landscape evidenced by the study findings, it's clear that marketers need to keep their finger on the pulse to maintain this delicate balancing act," says Deborah Hall, Marketing Week co-chair and managing director, web2mobile.ca.

Proof is proof: where do we go next?
While many (56 per cent) continue to believe that senior management is interested in digital marketing, they also recognize that senior management is taking a good hard look at measurement. Asked what would be needed to change in order to spend more budget on digital media, respondents answered with proof that it works (24 per cent), measurement tools (24 per cent), better understanding (20 per cent) and more resources (12 per cent).

"This year's findings suggest that within the constantly shifting digital marketing realm, education is key to future growth. The question becomes whose responsibility will it be - the agencies' or the marketers'," concludes Mr. Levy.


Leaders in the digital marketing world
Asked who respondents would identify as leaders in digital marketing, the list has expanded well "beyond the tech world" to include consumer packaged goods and retail categories. Global brands cited in the findings included Apple (21 per cent), Google (10 per cent), Nike (10 per cent), Amazon (9 per cent), Dell (8 per cent), Coca Cola (7 per cent), TELUS (6 per cent), Rogers (6 per cent), Starbucks (6 per cent), Facebook (5 per cent), Dove (4 per cent), e-Bay (4 per cent), Best Buy (3 per cent), Microsoft (3 per cent), Chapters/Indigo/Coles (3 per cent), Procter & Gamble (2 per cent), Aeroplan (2 per cent), Pepsi (2 per cent), and ING (2 per cent).

Marketing Week 2009 is being presented in Toronto November 11 - 12 by CMA and Marketing and consists of two intense days -- Digital Day November 11 and Media Day November 12 -- of workshops, panel discussions and keynote presentations sharing the latest insights, research and best practices. It brings together a wide range of professionals from all corners of the industry to discuss and explore strategies. For more information on the program visit http://www.the-cma.org/marketingweek.

About Canadian Marketing Association
With more than 800 corporate members, the Canadian Marketing Association (CMA) is the largest marketing association embracing Canada's major business sectors and all marketing disciplines, channels and technologies. CMA is the marketing community's leading advocate on the key public policy issues affecting both consumer and business-to-business marketers. As well, the Association is the principal provider of knowledge, marketing intelligence and professional development opportunities for marketers, and a catalyst for networking and business opportunities within the marketing community. For more information visit www.the-cma.org.

About Marketing
Marketing magazine is dedicated to the businesses of marketing, advertising and media. Launched in 1908, Marketing has a long history of engaging readers with provocative, analytical and thoughtful content. Along with Marketing magazine's regular bi-weekly coverage and commentary about matters in the marketing business, both in Canada and beyond, Marketing also produces Marketing Daily, Marketing online, Marketing custom publishing and events. For more information visit www.marketingmag.ca.

About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, health and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group. To learn more, visit www.ipsos.ca.

These are some of the findings of an Ipsos Reid national survey, in collaboration with Canadian Marketing Association (CMA) and Marketing magazine, conducted online with 540 Canadian marketers/agencies from among CMA members and Marketing Magazine subscribers in early September, 2009. For a complete report of the findings please visit http://www.ipsos-na.com/news/.

For 2009 Marketing Week media accreditation, more information on the study findings or to arrange an interview please contact Susan Willemsen, Renee Lalonde or Danika Lochhead at The Siren Group Inc. Tel: 416-926-8087. Fax: 416-926-9712. E-mail: info@thesirengroup.com or www.thesirengroup.com.

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