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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