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To the surprise of no one, the advertisers that spend the most money are moving on from traditional media.
Ad Age has released its latest Leading National Advertisers report, which provides details on the top 200 advertisers ranked by total ad spend. The report concluded that spending on "measured media" (or traditional channels such as television, radio, and print) fell among these top spenders by 2.3%.
At the same time, spending on "unmeasured media" (or digital media channels such as search, mobile, display, and online video) surged by 9.1%.
These big spenders are moving their marketing budgets into digital channels because it can help them more effectively target their ad campaigns and reach younger audiences. These targeted campaigns include personalized communications, timed messages, and ads aimed at specific demographics.
CVS Health, for example, is using digital channels to send personalized marketing to some of the 70 million members of its loyalty rewards program. Rather than spending money to reach everyone, the company is spending money to reach repeat customers in order to stimulate demand among them.
Meanwhile, Dick's Sporting Goods is using direct-to-consumer methods, specifically email and its mobile app, to send targeted and personalized messages.
Digital also provides the major advantage of reaching the coveted 18-24 demographic, who are not as active on traditional media. JC Penney uses digital to reach this segment and traditional to reach its older consumers. Kimberly-Clark, meanwhile, has said it's pushed all in on digital for some of its feminine care brands because younger consumers do not watch TV commercials anymore.
Adults between the ages of 18 and 24 watched an average of 16 hours and 18 minutes per week in the first quarter of 2016, up from 18 hours and four minutes per week in Q1 2015, reports Nielsen.
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