2013 Ad Spending Forecast +0.7% as Digital Growth More than Offsets Legacy Declines

2013 Jack Myers Advertising Spending Forecast BillionsRead Jack Myers39 Overview and Perspective below plus our 20132020 Forecasts 2013 Jack Myers Advertising Spending Forecastamp160 Billions amp160 amp160 amp160 amp160 amp160 amp160 amp160 Categoryamp160amp160amp160 2012 amp160 Change amp160 2013 amp160 Change amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 Total Marketing 59330 amp160amp160amp160amp160amp160amp160 090 amp160 58880 amp160 08 Total Media Advertisingamp160amp160 19680 amp160 490 amp160 19810 amp160 070 Traditional Legacy Media 14730 amp160 140 amp160 13950 amp160 53 Legacy Media Digital Advertising 1270 amp160 1960 amp160 1520 amp160 1970 Total Digital Advertising 3590 amp160 2530 amp160 4520 amp160 2590 Digital Originated Advertising 1710 amp160 2860 amp160 2230 amp160 3050 Promotional Marketing 38010 amp160 17 amp160 37080 amp160 24 Search Marketing 1730 amp160 1800 amp160 2070 amp160 2000 SOURCE Jack Myers Media Business Report 20102020 Marketing and Advertising Investment Report Full source and details available at wwwjackmyerscom amp160 amp160 amp160 amp160 amp160 amp160 Includes Olympics Political amp160 amp160 amp160 amp160 amp160 amp160 amp160 Excludes Search amp160 amp160 amp160 amp160 amp160 amp160 amp160 Includes Digital Originated Display Video Gaming Mobile Social Rich ITV amp160 amp160 amp160 amp160 Includes Trade and Consumer Promotion Direct Marketing PR Event amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160Total media advertising spending increased 49 in 2012 to 1968 billion including Olympics and political spending but excluding search marketing investments Jack Myers Media Business Report projects 2013 ad spending will increase a marginal 07 but will rebound steadily with average annual increases of 50 in 2014 and 2015 and average compounded annual growth of 61 from 2016 to 2020 The full detailed Myers 20102020 Marketing and Advertising Investment Report is available to members at wwwjackmyerscom The report includes 52 marketing advertising and media categories with annual details covering 2010 to 2020Growth in advertising investments will be driven primarily from the shift of traditional quotbelowthelinequot promotional spending to digital advertising solutions that offer more efficient capabilities to marketers for coupon distribution contests and sweepstakes public relations loyalty programs and tradedirected marketing Total above and belowtheline marketing communications spending increased 09 in 2012 and is forecast by Jack Myers Media Business Report to decline 08 in 2013 followed by steady annual declines averaging 04 from 20142020 The decline in total marketing communications investments results primarily from the shift to digital implementation which can be achieved more efficiently than traditional FSIs direct mail and offline public relations Hispanic advertising spending increased 133 in 2012 and is forecast by Myers to increase 91 in 2013Promotional MarketingPromotional spending declined 17 in 2012 to 380 billion and is forecast by Myers to continue declining 33 annually from 2013 to 2015 and 48 annually from 2016 to 2020 Total promotional investments by marketers are forecast to be 2676 billion in 2020 a decline of 1125 billion while total advertising investments are forecast to increase from 1968 billion in 2012 to 2936 billion in 2020 a shift of 968 billion into media advertising coffers Search marketing is forecast to grow 167 annually from 2013 to 2015 and 78 annually from 2016 to 2020 from 173 billion in 2012 to 398 billion in 2020Digital AdvertisingOf the total increases in advertising spending almost all are being accrued by digital assets Our detailed digital marketing report will be issued in the next several weeks and is available to Jack Myers Media Business Report subscribers at wwwjackmyerscom For legacy media such as television magazines newspapers radio and outofhome traditional ad revenues sources TV commercials print pages etc will decline an average 28 annually from 2013 to 2015 and another 08 annually from 2016 to 2020 Excluding cable network cinema and pointofinfluence advertising however traditional revenues of legacy media will decline 46 annually from 2013 to 2015 and 24 from 2016 to 2020 The digital assets of these companies will more than compensate for these declines finally putting an end to the myth that the growth of digital pennies do not compensate for the loss of analog dollars In fact digital spending generated by legacy media companies will increase from 127 billion in 2012 to 152 billion in 2013 and to 468 billion in 2020 Total Digital Originated spending excluding search and excluding the digital revenues generated by legacy media companies is forecast to increase 300 annually from 2013 to 2015 and 203 annually between 2016 and 2020Total Digital Advertising excluding search is forecast by Myers to increase 254 annually from 2013 to 2015 and 177 annually from 2016 to 2020 The detailed report on digital gains for each legacy and digitaloriginated media category will be published in a future Jack Myers Media Business Report and is available to members at wwwjackmyerscomIf you are receiving this report you are a registered subscriber to Jack Myers Media Business Report or are receiving it as part of a registered corporate subscription As a subscriber Jack responds personally to your emails requests and comments He is available to speak at your company events In addition to Jack Myers Media Business Reports your subscription underwrites MediaBizBloggerscom Women in Media Mentoring Initiative Jack Myers Wall St Report Jack Myers Video Media Report plus our exclusive industry economic forecasts trend forecasts and corporate performance research Redistribution in any form except among approved individuals within your company is prohibited As a subscriber you have full access to all archives and reports at wwwjackmyerscom If you require your ID and 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2013 Ad Spending Forecast +0.7% as Digital Growth More than Offsets Legacy Declines

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2013 Ad Spending Forecast +0.7% as Digital Growth More than Offsets Legacy Declines

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