Chart of the month - Where are your customers? And where is your budget?

This chart compares where the eyeballs are (light blue bars) vs where the budget is spent (dark blue). Importantly, it does not take into account any quality/impact differences between channels, but just looks at the quantitative side.

The key message is that the budgets spent on some channels are aligned with their relative importance (TV, magazines), while other channels still get a disproportionately high budget (newspapers), and other ones get a smaller piece of the cake (radio, but also and more importantly, the Internet). You can also see that over time, budgets are creeping towards the optimum (newspapers are down vs 2007 and radio and Internet are up)... although it takes a long time for companies to adjust their marketing mix in a significant way. Indeed, after so many years, the opportunity for internet innovators continues to be huge...

Applying this chart to pharma will yield great food for thought...watch this space!

Written by Fonny Schenck

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