Survey Marks Seismic Shift to Digital in 2011

More than 92% of digital media and marketing pros DIGIDAY surveyed in our State of the Industry Survey on Digital Advertising agree that the business of advertising is undergoing a “seismic shift” to digital. Mike Baker, CEO of DataXu, in presenting the data drawn from 426 advertisers, agencies and publisher respondents at the DIGIDAY:ONMEDIA conference yesterday, said that “digital advertising is no longer the tail wagging the dog in media and marketing. It is the dog.”

Baker also coined the term “branded performance” to describe the shift that has gripped advertisers who seek demonstrable gains in reward for their increasing ad dollars. He said, “The digital medium is spawning a new behavior: mixing the top and the bottom of the purchase funnel together has a lot of momentum.” It then follows that digital advocates looking to accelerate the migration from traditional media to digital – or at least to a more converged media landscape – could do so by “driving towards performance.”

Not surprisingly, “performance based optimization” was the top pick of agencies and brands asked to identify the most effective type of audience targeting. Another clear trend is the decline in usage of ad networks going forward into 2011, with the commensurate rise of demand-side or media management platforms (DSP’s). Baker explained, “Part of the benefit (of DSP’s) is transparency. I need to learn how an ad net operates. Advertisers, and to a greater extent agencies, because they’re the ones with the expertise, are saying, why not just dive in the water and figure it out myself? This is not going away, nor is the complexity in the process of media planning and buying. You can’t do your job unless you know what’s going on and why. That idea is here to stay.”

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