Changing media landscape

Americans are increasingly less inclined to tune into the nightly network news broadcasts for their daily dose of news. Newspaper readers are dying off faster than they're being replacedas people turn to the Internet for frequent updates and are used to free access to hot off the press information. According to recent figures from Nielsen Monitor-Plus, the leading provider of competitive advertising information, advertising spending indicates that Internet advertising showed substantial increases (+23.2%) of any category against National Magazines (8.4%), National Sunday Supplements (6.5%), Outdoor (5.1%) and Spot TV Markets 101-210 (3.2%).Here is a summary of the Nielsen advertising spend by category:
Internet...up 23.2% National Magazines...up 8.4% National Sunday Supplements...up 6.5% Outdoor...up 5.1% Spot TV (markets 101-210)...up 3.2% Spanish-Language TV...up 0.2% Cable TV...down 0.3% Spot Radio...down 1.8% Network TV...down 3.8% Spot TV (markets 1-100)...down 4.6% Local Sunday Supplements...down 4.7% Local Magazines...down 5.2% B-to-B Magazines...down 5.7% National Newspaper...down 5.9% Local Newspaper...down 8.0% Network Radio...down 8.5%.

These figures indicate that the media landscape is changing dramatically and customers are driving interactions with brands. Veronis Suhler Stevenson (www.vss.com) cites that the trends indicate that ' dizzying array of media choices prompted major brands to ratchet up their use of alternative media strategies.' VSS indicated that spending on alternative advertising – including Internet, mobile, videogames and digital out-of-home, among others – grew 36.6 percent to $26.53 billion in 2006 and this has accelerated in the last 18 months. Traditional advertising spending in the same time frame grew only 2.4 percent to $183.21 billion in 2006 while producing a CAGR of 2.8 percent in the five-year period, hindered by slow growth in print-based newspapers, yellow pages and consumer magazines. What will be the impact on media, advertisers and media consumers as converging media undergoes radical change?