Are we seeing the fall of advertising?

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For some time now I’ve firmly believed that word of mouth marketing and social media have been becoming much stronger as effective marketing tools for companies to use to promote their products. However, I have never really had any strong proof to back it up, other than the usual statistics from surveys and reading other people’s opinions.

I read an interesting article on CBC (Newspaper print ad revenue falls at record pace in 2007, online ads rise) that highlighted how, in New York, newspaper print advertising fell by a record percentage in 2007 whilst online newspaper advertisements increased but at a slower pace (the slowest pace from 2003), leaving quite a big gap in amounts spent.

Although the article does not mention word of mouth or any other forms of marketing it makes me think that surely these have been partly to blame.

I know there are threats of a global slowdown and a possible recession but I don’t believe that marketing teams will have just stopped spending money by reducing their advertising budgets. I think they will have just found much more tactical and effective ways of promoting their goods to their consumers.

Something must be filling the gap where advertisements used to be and in my opinion word of mouth marketing and social media will probably be somewhere in there eating up these big budgets.