OnMedia VC Survey Results

In preparation for OnMedia NYC, AO and KPMG wanted to find out how the forces of new media have affected the marketing, branding, advertising, and public relations industries. Below are the results of a survey we conducted of more than 300 VCs, CEOs and insiders in the media industry.

So where are the investment dollars going and will they turn a profit? Almost ninety percent see advertisers moving more than a quarter of their dollars and time away from traditional channels. Seventy-one percent of respondents see the recent new media acquisitions by established media companies making money in less than five years. The industry is poised to engage in -- and profit from – new media.

Respondents also said companies will pay more attention to mobile technology. More than eighty percent see an increase in the use of mobile marketing in the media mix in the future. E-commerce is a key area of current and future investment.

But survey participants don't think the industry is ready yet for social networking. Ninety-one percent don't think advertisers have figured out how to include social networking in their overall advertising plans. "Social networking breaks with the traditional view of mass communications (one to many) …. (Advertisers) need to learn to establish a dialog with the consumer instead of the traditional monologue," noted one respondent. In addition, almost half (48%) don't feel advertising agencies have a plan in place to leverage it for their clients.

The reigning confusion in the media industry coupled with the commitment from media companies to crack the online code means there is a huge opportunity in the marketing, advertising, branding and pr industries. Get ready for a big year in new media innovation.

Brian Hughes
Partner, KPMG