The impact of new media for Brazilian advertisers

Abstract

The rise of digital technology enabled the development of unprecedented means of contact between companies and their customers, the so-called new media. In addition to their capacity to reconfigure sectors such as the phonographic and motion picture industries, these new media have also had a remarkable impact on the advertising industry. The style of cross-input among advertisers, mass media and consumers that was consolidated during the twentieth century is now threatened by the widespread use of devices such as digital video recorders (DVRs), tablets, game consoles and mobile phones, all of which empower consumers to adjust their exposure to advertising. In this new environment, the traditional media and the new media vie for consumer preference and for advertising budgets. Despite advertisers' need to track and ensure the profitability of their advertising campaigns, the study found that investments in traditional media vehicles have been rising, whereas the audience delivered is declining. Thus, in a world of change, this study seeks to identify what factors influence the media buying of Brazilian advertisers, analyzing their perceptions of traditional media and of emerging media, as well as the challenges and opportunities that they represent. To this end, exploratory research based on a qualitative approach was conducted. In June and July of 2009, in-depth interviews were held with the people in charge of the advertising campaigns of 15 large advertisers from several industries. The analysis of the field data in the light of the literature on the subject identified three factors that strongly influence the media mix of the interviewees: the use of metrics that are unsuitable for the new media, advertisers' dependence on their advertising agencies and the mass media vehicles, and advertisers' internal processes.