Total 2010 U.S. marketing communications and advertising investments will grow 3.2% to $601.3 billion according to new estimates by Jack Myers Media Business Report. The full report is published below and available to subscribers here. The newly recalibrated data provides details for 57 media and marketing categories and, for the first time in any advertising analysis, breaks down digital and traditional investments for 14 traditional media and marketing categories. Traditional advertising investments in television, print, radio and out-of-home are projected to grow only 1.8% but digital advertising investments in these media will grow by an estimated 28%, spurring total 3.6% growth in traditional media categories.
Broadcast network television on-air advertising, for example, is expected by Myers to increase 5.4% in 2010, but the networks will also be the beneficiaries of $750 million in digital revenues, resulting in total revenue growth of 6.5%. Consumer printmagazine advertising is projected to increase 1.0%, but magazine publishers' digital advertising is estimated to increase 8.5% to nearly one billion dollars, driving magazine publishers' combined growth to 1.4%.
The new Myers Report also includes detailed data on advertiser investments in Online Originated Display Advertising, Online Originated Video Content & Advertising, Mobile & Apps Advertising, Satellite/Internet Radio Advertising, Interactive/VOD/Addressable TV Advertising, Point-of-Influence/GPS Advertising, Videogame Advertising, Social Media/Word-of-Mouth/Conversational Marketing, Offline Public Relations, Branded Entertainment/Product Placement, Search Marketing (Online/Mobile), Experiential/Event Marketing, Cinema Advertising and Out-of-Home/Place-Based Advertising.
The report eliminates the traditional barriers between above and below-the-line marketing budgets. Marketers are integrating their budget allocations to reflect the increasing cross-over between their marketing and sales functions, which have historically been separated. This trend is especially apparent in social media, which grew 50% to $1.2 billion in 2010. (Most Facebook advertising is accounted for within the new Online Originated Display Advertising category, which increased 9.2%.)
Direct marketing has rapidly shifted from direct mail to e-mail and Myers estimates that 23% of total direct mail communications in 2010 is e-mail, an increase of 8.5%, compared to a 3.1% increase in traditional direct mail, resulting primarily from political spending.
In early December, Jack Myers Media Business Reportwill release forecasts for 2011 and 2012, with long-term forecasts for both traditional and digital investments for 2020. While the following data has been aggregated from multiple sources, the digital spending estimates for traditional media are based on primary research and input from industry experts. Since this is the first effort to develop such detailed insights, readers are encouraged to share insights and comments on the accuracy of this data, which will be reviewed and analyzed for future reports.
Jack Myers Media Business Report 2010 | ||||
Advertising & Marketing Investment Report | ||||
UPDATED 11-15-2010 | ||||
2009 | 2010 | |||
$ | % Change | $ | % Share | |
Direct-to-Trade Promotion/Slotting Allowances | 162,884 | 2.0% | 166,142 | 27.6 |
Consumer Sales Promotion/FSI/Incentives | 144,230 | 2.3% | 147,475 | 24.5 |
Traditional | 143,137 | 2.0% | 146,000 | 99.0 |
Digital | 1,093 | 35.0% | 1,476 | 1.0 |
Direct Mail/ E-Mail Marketing | 60,028 | 4.3% | 62,601 | 10.4 |
Traditional | 46,848 | 3.1% | 48,300 | 77.2 |
Digital | 13,180 | 8.5% | 14,300 | 22.8 |
Newspaper Advertising(Print + All Platforms) | 32,096 | -7.3% | 29,762 | 4.9 |
Traditional | 29,456 | -9.0% | 26,805 | 90.1 |
Digital | 2,640 | 12.0% | 2,957 | 9.9 |
Local & National Spot Broadcast TV(All Platforms) | 20,075 | 15.8% | 23,252 | 3.9 |
Traditional | 19,484 | 16.0% | 22,601 | 97.2 |
Digital | 591 | 10.0% | 650 | 2.8 |
Cable/Satellite Network Television(All Platforms) | 19,017 | 8.9% | 20,716 | 3.4 |
Traditional | 18,452 | 8.6% | 20,038 | 96.7 |
Digital | 565 | 20.0% | 678 | 3.3 |
Broadcast Network TV(All Platforms) | 17,363 | 6.5% | 18,486 | 3.1 |
Traditional | 16,827 | 5.4% | 17,736 | 95.9 |
Digital | 536 | 40.0% | 750 | 4.1 |
Experiential/Event Marketing | 17,740 | 4.0% | 18,450 | 3.1 |
Consumer Magazines Advertising(Print + All Platforms | 16,162 | 1.4% | 16,391 | 2.7 |
Traditional | 15,263 | 1.0% | 15,416 | 94.0 |
Digital | 899 | 8.5% | 975 | 6.0 |
Terrestrial Radio(All Platforms) | 14,952 | 6.1% | 15,867 | 2.6 |
Traditional | 14,552 | 5.6% | 15,367 | 96.8 |
Digital | 400 | 25.0% | 500 | 3.2 |
Search Marketing (Online/Mobile) | 10,700 | 16.8% | 12,498 | 2.1 |
Yellow Pages(Print + Digital) | 13,363 | -9.7% | 12,062 | 2.0 |
Traditional | 11,033 | -10.0% | 9,930 | 82.3 |
Digital | 2,330 | -8.5% | 2,132 | 17.7 |
Media Directed Promotion/Event/Sponsorships | 9,910 | 15.0% | 11,397 | 1.9 |
Branded Entertainment/Product Placement | 7,543 | 6.0% | 7,996 | 1.3 |
Out-of-Home/Place-Based(excl. Cinema & P-O-I) | 6,203 | 3.2% | 6,401 | 1.1 |
Business-to-Business Magazines(Print + All Platforms) | 6,748 | -5.6% | 6,370 | 1.1 |
Traditional | 6,568 | -8.5% | 6,010 | 94.3 |
Digital | 180 | 100.0% | 360 | 5.7 |
Online Originated Display Advertising | 4,800 | 9.2% | 5,242 | 0.9 |
Local/Regional Cable TV | 4,059 | 17.5% | 4,767 | 0.8 |
Traditional | 3,976 | 17.2% | 4,660 | 97.8 |
Digital | 83 | 30.0% | 107 | 2.2 |
Offline Public Relations | 4,447 | 2.0% | 4,536 | 0.8 |
Broadcast Syndication(All Platforms) | 4,105 | -8.1% | 3,771 | 0.6 |
Traditional | 4,038 | -8.5% | 3,695 | 98.0 |
Digital | 67 | 15.0% | 76 | 2.0 |
Custom Publishing/Site Advertising(Print & Digital) | 1,754 | -2.4% | 1,711 | 0.3 |
Traditional | 1,532 | -8.6% | 1,400 | 81.8 |
Digital | 222 | 40.0% | 311 | 18.2 |
Social Media/WOM/Conversational Marketing | 800 | 50.0% | 1,200 | 0.2 |
Videogame Advertising | 908 | 15.0% | 1,044 | 0.2 |
Mobile & Apps Advertising | 714 | 28.0% | 914 | 0.2 |
Cinema Advertising | 808 | 4.1% | 841 | 0.1 |
Traditional | 808 | 4.0% | 840 | 99.9 |
Digital | 0 | 200.0% | 1 | 0.1 |
Point-of-Influence/GPS[P-O-I] (Multi-Platform) | 636 | 5.0% | 668 | 0.1 |
Satellite/Internet Originated Radio | 341 | 13.0% | 385 | 0.1 |
Online Originated Video Content Advertising | 226 | 55.0% | 350 | 0.1 |
Interactive, VOD & Addressable TV Advertising | 20 | 150.0% | 50 | 0.0 |
TOTAL | ####### | 3.2% | $601,345 | 100.0 |
Source: Jack Myers Media Business Report© copyright 2010 |
Source: Jack Myers Media Business Report © copyright 2010
Media Advisory Group, Jack Myers, and employees accept no responsibility for any action(s) taken as a result of this forecast. 2010 are estimates. $'s are in billions
References: Barclays Capital, BIA/Kelsey, CAB, Carat, Credit Suisse, Deutsche Bank Equity Research, DMA, eMarketer, Goldman Sachs, GroupM, IAB, JPMorgan Chase, Kantar Research, Magna Global, Morgan Stanley, MPA, Needham Research, Nielsen, PQ Media Alternative Media Research Series, PriceWaterhouseCoopers, RAB, TvB, UBS, Veronis Suhler Stevenson Communications Industry Forecast, Wachovia, Wedbush, Zenith Optimedia.
This forecast excludes Olympics but includes NFL, NCAA and other sports programming. Includes Hispanic Media, although Jack Myers Media Business Report also issues separate data for Hispanic Media.
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