Digital Versus Print Advertising in the 21st Century

A Research Paper
Presented to:
Dr. Aireen B. Arnuco

In Partial Fulfillment
Of the Course ENGLRES
3rd Semester, AY 2015-2016

Submitted by:
Chung, Chance Stephen R.
Ty, Ron Bailey G.

ENGLRES C32
August 17, 2016

Thesis Statement: Although print ads are still prevalent in our current market, digital ads are
more effective because they are cheaper than print ads, they catch the attention of the younger
generation, and digital ads have a higher return on investment.
I.
Introduction
A. Should advertising companies use print or digital ads?
B. A well planned marketing strategy will greatly impact sales and performance of a
company.
C. Although print ads are still prevalent in our current market, digital ads are more effective
because they are cheaper than print ads, they catch the attention of the younger
generation,

and

digital

ads

have

higher

return

on

investment.

II.
Three factors to consider for a good advertising medium.
A. Costs less than the alternative type of advertisement.
1. Digital ads are proven to cost less than print ads.
2. Costs in digital ads are easier to monitor allowing businesses to adjust costs
based on performance.
B. Catches the attention of the younger generation.
1. Children are more receptive to ads than adults.
2. Children are proven to influence the purchases of their parents.
C. Has a good return on investment.
1. The return on investment can identify failure and success of a company.
2. Digital advertising has a greater return on investment compared to print ads.
III.
A.
B.
C.

Conclusion
Digital ads have a greater return on investment compared to print ads.
Digital ads are effective in influencing the purchases of the youth.
The costs for digital ads can easily be manipulated by its owners.

Indispensable in modern business is the use of tools to influence demand. From the
newspaper ads of the 17th century to the social media of the digital era, we have created a wide
collection of available options for businesses to choose from. However, simple as the act of
making a choice maybe, its one that bears great implications. Make the right choice and a
brand can go from antiquated to the most sought for product in the country. Nonetheless, a
misguided plan and the unwise utilization of an incompatible strategy will undoubtedly yield

towards a call for insolvency. Taking this state into consideration, the ever relevant question
presents itself: what is the best medium to use in advertising a product. To answer the question,
an analysis of advertising is necessary. Advertising, by its very nature is multifactorial. It is highly
dependent on different variables, often raging from varying demographics and influenced mainly
by peoples age, sex, social status and different positions in society (Lewis, 2008). To yield an
impartial answer to the question, it is imperative to set aside the various variables that can
impair the reliability of this research. For the purposes of this study, focus on the biggest and
most dynamic market holders will be given the youth. Constituting a majority of the worlds
workforce and mostly influenced by the advancement in technology, the youth, unlike those
before them are the most suitable subjects for an impartial account on the effectivity of various
methods in advertising both for their literacy in technology and exposure to conventional means
of relaying information, writing in print. This study will target for its subject two of the most
common means of advertising; namely, print and digital ads. Aiming to determine which of the
options would produce the best result, this study will tackle in-depth the following criteria: its
weight on the balance sheet, effectivity in arousing the youth, and potential for return. The
ultimate purpose of the researchers would be to prove that although print ads are still prevalent
in our current market, digital ads are more effective because they are cheaper than print ads,
they catch the attention of the younger generation, and digital ads have a higher return on
investment.

First, a comparison for the costs of digital and print ads. According to a 2015 study by
Forrester Research, digital advertising is dominated by three companies: Facebook leading with
26.20% of the market, Google with 11.80% of the market and Twitter controlling 5.90% of the
market. The cost of digital advertisement would vary based on the platform used and the actual
response of the market. Based on data personally collected by the researchers from readily
available rates on their website, the succeeding analysis was concluded. The cheapest of the
three would be Facebook with ads going as low as $2.5 a day. The site also offers other options;
such as, pay-per-click ads which costs around a dollar per click. The second would be Google
ads. Pricing for Google is based on the keyword availed of. Ads averages at around $1 - $2 per
click and goes up to around $50 dollars per click for popular key words; such as: insurance,
mortgage and attorney. The most expensive of the three would be Twitter. Ads for Twitter starts
at $5 per clicks more than double of what Facebook charges. Based on a study by Word
Stream, one of the biggest online advertising agency in the United States, giant retailers would

usually be billed at around $50 million annually for digital ads, while the same would cost small
businesses around $9,000 a month (Shewan, 2016). On the other hand, a recent article by
Entrepreneur magazine names the three most used channels for print advertising as the follows:
billboards, newspapers, and magazines. The prices for digital ads are highly influenced by the
following: estimated amount of people reached by the various channels, size of the
advertisement, and spending capacity of the reached audience. The article also covers the
average costs of these print ads. Among the three, magazine ads are the most expensive. An
ad at a local publication would cost around $500 and can go up to $20,000 for national
publications. For international publications, premium ads would peak at around $500,000. The
next of the list would be newspapers. An ad at a local publication would cost around $200 and
peaks at $20,000 for national ads. The cheapest among the three is billboard ads. Price may
vary depending on the location, but generally it starts at monthly rate of $50,000 and peaks at
$200,000 for major cities like New York (Kobliski, 2006). Excluding the cost of production for the
creating the advertisement, an article by Mark Prosser (2015), chief marketing officer of FXCM,
revealed that on average, small businesses would pay around $15,000 monthly for print ads.
Without giving any bearing on the effectivity of either medium, an assessment solely on cost
would suggest that digital ads, as compared to print ads are more budget-friendly. Comparing
both side by side, it would cost $6,000 more for small businesses monthly if they decide to use
print ads. Thus, on account of the cost, digital ads are the preferred choice.
Second, an assessment on which of either medium best catches the attention of the
youth. With the diverse amount of information and researches readily available today, the task
of distinguishing which is the better choice is a daunting task. In order to arrive at a credible
conclusion, an account on the pros and cons of both medium will be considered. Also, a survey
directed towards the youth will be criticized to see which, based on their opinions is most
effective. First, on print advertisement. In a 2015 Forbes article by Roger Dooley, author of
several books on science-based business strategies and founder of Dooley Direct, a marketing
consultancy company, showed that based on a neuroscience research, print ads as compared
to digital advertisements possess a distinct way of connecting with the human brain. Physical
materials, such as print ads involves a deeper sense of emotional processing which is helpful
for memory and brand recognition. He also cites other advantages, such as: increase in review
time, engagement and memory retrieval. This article is backed up by the findings of another
article written by Halek (2015), which states that print ads has the ability to engage with more
senses compared to digital ads. However, despite these advantages, there are serious
detractors to this medium. Over the past couple of years, print ads have seen a sharp decline in

its readership. In a recent survey conducted by the researchers, out of the 35 respondents
within the 16 to 21 age bracket, only 11% admitted to still read the newspapers, while 20%
admitted to read magazines. This phenomenon is important to note, considering that it renders
useless the material benefits of print advertising. With this degree of readership, the
neurological advantage of print advertisements will not save it from its declining market base.
Another disadvantage of print advertising is its lead time. Elle Smith (2014), a renowned expert
in the field with 25 years of experience in advertising, states that one of the biggest
disadvantages of print advertising would be the long lead time that prohibits the message from
being sent as quickly as other methods. She states that a typical magazine advertisement would
have to be prepared months before it is actually released. That means, that if a trend comes out
today, it would take months before an agency could capitalize on that trend when using print
ads. By the time the ad reaches print, the trend may have already ceased. On the other hand,
digital advertisement has its fair share of advantages and criticisms. The advantages of digital
advertising are clearly described in Inga Rundquist (2010), a public relations officer and coowner of MindFire, study on digital advertising. She presented three key features that makes
digital advertising a desirable choice; namely, its ability to provide for instant gratification,
options for geo-targeting, and constant exposure. First, digital ads allow for instant gratification.
Unlike print ads, digital ads connect to online shops. Considering that most purchases are
bought on impulse, the probability at arriving at a sale when using digital ads is significantly
higher as compared to print ads. Second, digital ads have options for geo-targeting. Online ads
have the ability to target who can view and click ads based on previously provided information
by the viewers. As a result, digital ads provide for a higher probability that the ads is sent to the
intended geographic. Lastly, on constant exposure. Unlike print ads, digital ads can be viewed
24/7 and is not constrained to one activity, such as reading newspapers or magazines. A
person is exposed to digital ads while surfing the web, chatting with friends, and watching
videos - tasks evenly distributed throughout the day. It allows for greater exposure as compared
to print. Another benefit would be teens exposure to mediums that provides digital ads. In the
same survey used above, 100% of those interviewed admitted to use social media and 97%
claims to have noticed the digital ads available in the websites that they surf. This is significantly
higher as compared to the result on print ads cited above. Nonetheless, despite its clear
advantages, it also bears faults. In a study by Miranda Brookins (2015), a web marketing
professional, she states three issues with the digital ads available today. Namely, customers
ignore ads, viewing problems, and distraction. First, customers ignore ads. With the abundance
of advertisement scattered in almost everywhere, people have gone used to its presence and

have developed a habit for ignoring ads. As a result, despite ads being sent to the intended
geographic, there is still no assurance that the ads are properly examined by the persons
surfing the web. Second, viewing problems that arise from technical difficulties. In cases where
the viewer experiences downtime and lag, the advertiser loses an opportunity for advertisement
and may result to a potential loss of sale. Third, customers often gets distracted when viewing
ads. People visit web pages for a purpose and it is not to view ads. In order for an ad to be
successful, ads require a significant degree of uniqueness and eye-catching ability to be more
important than the original intention of the person when he visited the site. Failure to do so
renders the ad as another distraction on the side of the screen. In comparing both choices
solely on their material advantages and disadvantages, a decision of absolute superiority in
terms of effectivity would be impossible to determine. At best, the determination would differ on
a case to case basis. Thus, in order to arrive at a decision, a greater bearing on the number of
readership was given. Thus, for effectivity in arousing the youth, digital ads are deemed to be
the more desirable choice due to the fact that more concedes to constantly use mediums that
display it as compared to mediums that promote print ads.
Lastly, an account on how much return on investment could be expected from either
medium. Return on investment or ROI is defined by Entrepreneur as the measure of profitability
that deals with the money you invest in the company and the return you realize on that money
based on the net profit of the business. The importance of a favorable ROI is best emphasized
in the words of Dennis Seymour (2014), Co-Founder of Leapfrogger Inc., a digital marketing
agency. In his website, he quotes: The business owner has to know that hes putting money
into something that will give it back with a profit. Otherwise, he might as well be tossing his cash
into a bottomless pit. Advertising costs will constitute a bulk of a companys annual expense, it
is only necessary that it yields a positive return. Thus, it is crucial that the final criterion used in
clash between digital and print ads be the ROI that both would yield. In a 2013 study by GFK
Panel Services, the leading research company of ROI studies, based on the 10 campaigns
examined, print ads was able to bring back an average of 120% ROI. That means, for every one
dollar invested on print, an average of one dollar and twenty cents was taken in return. Lower
compared to another study by Consortium Research for digital ads. A study conducted in 2014
by Consortium research revealed that digital ads yields a significantly higher ROI as compared
to print. The results of their study showed that Facebook and Google ads on average yields a
48% and 39% ROI respectively. Both almost two times higher than the going average for print
advertising. The result is supported by a survey conducted by the researchers. Out of the 35
respondent, 97% confirms that their purchases are influenced by digital ads, while only 23%

confirms to be influenced by print ads. Taking into consideration the cited results, the
information suggests that Digital ads are able to produce a better turnout insofar as ROI is
concerned.
An analysis on the results gathered supports a unanimous assessment in favor of digital
ads. In arriving at this conclusion, three criteria were used; namely, the cost, effectivity and
potential for return. On the first criterion, digital ads, on average would save small business
$6,000 a month as compared to print ads. On the second, data gathered suggests that although
no definitive research would prove the material superiority of any one medium over the other,
digital ads was able to come out as the more desirable on account of its wider readership. 100%
of the respondents surveyed admitted to use mediums that relay digital ads, while only 15%
admitted to use mediums that show print ads. On the last, compiled researches from credible
sources shows that digital ads are able to produce an ROI of two times more as compared to
print ads. When all three are taken into consideration, it provides for a clear assessment that
although print ads are still prevalent in our current market, digital ads are more effective
because they are cheaper than print ads, they catch the attention of the younger generation,
and digital ads have a higher return on investment.

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