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Behind the Numbers: an EMARKETER Podcast
The Daily: The Relationship Between Where People Spend Their Media Time and The Ad Dollars That are Trying to Reach Them | Aug 29, 2024
Aug 29, 2024
Ethan Cramer-Flood, a forecasting writer specializing in media and advertising trends, joins the discussion to uncover intriguing disparities in media consumption and ad spending. The conversation highlights where ad dollars fail to match viewer engagement, especially on platforms like Netflix versus YouTube and TikTok. Cramer-Flood emphasizes the importance for marketers to realign budgets according to consumer behavior and addresses the challenges posed by digital advertising on subscription services. It's an eye-opening exploration of the evolving media landscape.
17:33
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Quick takeaways
- A significant gap exists between social media ad spending and user engagement, with advertisers heavily investing in platforms like Meta despite shifting consumer behavior.
- Connected TV and streaming services are underfunded in advertising, only capturing a fraction of ad dollars compared to the time consumers spend on these platforms.
Deep dives
Imbalance in Ad Spending and Time Allocation
A significant disparity exists between where consumers spend their time and where advertisers allocate their dollars, particularly highlighted in social media usage. While U.S. adults spend about 18% of their daily digital media time on social media, this sector captures nearly 30% of digital ad dollars. Specifically, Meta's platforms, such as Facebook and Instagram, dominate social media ad expenditures, drawing approximately 75% of total digital ad dollars in this category despite commanding only 40% of user time. This growing gap indicates that while consumer behavior is shifting, advertisers' investment strategies may not align with where audiences are directing their attention.
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