Affirmative Advertising in a Digital Age

The Walt Disney Company spent 1.93 billion dollars in 2013 on advertising alone.  While this number seems extraordinarily high in an increasingly digital age, advertising was approximately 31% of the total of 6.14 billion dollars net income for the company in 2013.  The company’s total advertising spending includes measured-media and unmeasured spending.  Measured media consists of magazines, newspapers, broadcast networks, radio, outdoor, and internet advertising.  Unmeasured spending estimates direct promotion through internet paid search, social media, etc.

graph 1

In David Meerman Scott’s New Rules of Marketing and PR, Scott is very clear about the shift from sales and interruption advertising to content rich marketing in the increasingly digital market. In particular he writes, “Marketers must shirt their thinking from mainstream marketing to the masses to a strategy of reaching vast numbers of undeserved audiences via the web” (Scott, 46).  When looking at Disney’s total spending on advertising, it does not look like they are following the new rules of marketing.  Since 2009, the advertising spending has even gone up, and largely remains the same to today. records the Walt Disney Company as among, “The 12 Companies that Spend the Most on Advertising”.  This website records Disney’s total advertising spending in 2013 as 1.93 billion dollars and breaks it down as such:

TV: $273 million

–          Magazines: $60 million

–          Newspapers: $92 million

–          Internet: $37 million

–          Other: $1.46 billion

graph 2

The Walt Disney Company continues to be a power house in the family entertainment industry today.  Its net income has continuous increased since 2009 through 2013.  Do you think that with its continued spending on advertising in our increasingly digital market, the company will suffer, or end up changing its’ advertising spending habits?