
Digital advertising and marketing budgets will grow 21.2% in 2012 according to a new report being released next week by Jack Myers Media Business Report. Still, even with these substantial year-over-year increases, total digital marketing investments represent only 8.6% of marketers' total communications investments, up from 7.2% in 2011. For some traditional media categories, digital pennies have evolved into digital dollars, especially broadcast network television, where a 50% increase in digital revenues is forecast to generate $1.7 billion in incremental revenues. Consumer magazines, which are forecast to decline 2.5% in print ad revenues in 2012, amounting to a loss of $385 million, will recoup nearly all of that in digital revenues, resulting in a net forecasted loss of only 0.2% for the year. Newspaper digital revenues are forecast to increase 16.5% in 2012 for a gain of more than $500 million over 2011, but these incremental revenues will not offset more than $1.3 billion in lost print revenues forecast for the year.
Marketers will spend $3 billion less this year on Consumer Sales Promotion and printed coupons through companies such as News Corp's News America and Valassis, and will shift only $440 million of those budgets into the digital coffers of these traditional companies.
Next week, I will issue my full detailed 2012 forecast for 62 advertising and marketing categories. Below is the summary of digital investment increases for each media and marketing category.
| Jack Myers Media Business Report | |||||||
| Media/Marketing Economic Data & Forecast 2011-2012 | |||||||
| DIGITAL MARKETING AND ADVERTISING INVESTMENTS | |||||||
| Category | 2011 $ | 2012 $ | % Change | ||||
| (000,000) | (000,000) | ||||||
| Search Marketing | 14,622 | 16,377 | 12.0 | ||||
| Online Originated Text Display | 6,290 | 7,233 | 15.0 | ||||
| 3,160 | 3,602 | 14.0 | |||||
| Consumer Sales Promotion | 2,361 | 3,541 | 50.0 | ||||
| Newspapers | 3,386 | 3,944 | 16.5 | ||||
| Yellow Pages | 2,132 | 2,196 | 3.0 | ||||
| Social Mktg/WOM/Conver. | 1,680 | 2,688 | 60.0 | ||||
| Videogame/Virtual | 1,295 | 1,813 | 40.0 | ||||
| Mobile & Apps | 1,279 | 1,689 | 32.0 | ||||
| Consumer Magazines | 1,170 | 1,522 | 30.0 | ||||
| Broadcast Network TV | 1,126 | 1,688 | 50.0 | ||||
| Cable Network TV | 797 | 976 | 22.5 | ||||
| Terrestrial Radio | 761 | 1,005 | 32.0 | ||||
| Local/National Spot TV | 741 | 852 | 15.0 | ||||
| Online Originated Video | 525 | 920 | 75.0 | ||||
| B-to-B Magazines | 432 | 540 | 25.0 | ||||
| Custom Site Development | 389 | 482 | 22.9 | ||||
| Local/Regional Cable TV | 120 | 144 | 20.0 | ||||
| Broadcast Syndication | 88 | 106 | 20.0 | ||||
| Interactive/VOD/Addressable | 70 | 119 | 70.0 | ||||
| TOTAL | $42,424 | $51,437 | 21.2% | ||||
| Source: Jack Myers Media Business Report© copyright 2012 | |||||||
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