Ad Spending Will Grow 3% in 2007 and 7% in 2008: New Myers Forecasts

Suggestions of Ad Recession Are Misguidedamp160Full details on Myers spending estimates and forecasts from 2006 to 2009 for 18 media categories and six marketing categories are available at wwwjackmyerscomReports from TNS Media Intelligence and other forecasters suggesting the US ad industry may be entering a recessionary period are grossly misleading because they focus exclusively on traditional media such as television newspapers radio and online and fail to pick up on the shift of marketers39 budgets to untracked categories such as cinema mobile videogame advertising branded entertainment satellite radio and custom publishingThese categories will grow a projected 203 percent in 2007 and an additional 184 percent in 2008 and 185 percent in 2009 according to new advertising and marketing forecasts issued today byJack Myers Media Business Report These nontraditional media grew nearly 23 percent in 2006 delivering 252 billion to media company coffers or 113 percent of total 2006 ad expenditures of almost 2238 billionConversely 12 traditional media including yellow pages and online will increase less than one percent in 2007 according to Myers but will rebound in 2008 with 52 percent growth driven heavily by political advertising before softening again in 2009 with only 4 percent growth Excluding online advertising results in a revenue loss of 6 percent in 2007 for traditional media and a loss of 26 percent in 2009 Further eliminating outofhome and placebased media which are experiencing solid annual growth translates into spending declines for ten traditional media of 9 percent in 2007 and 30 percent in 2009 2008 spending increases 33 percentCombined the 18 media categories are projected to increase 31 percent in 2007 down from Myers39 original forecast issued last December of 37 percent Myers forecasts that overall media advertising will increase 69 percent in 2008 and 31 percent in 2009 Myers has been issuing advertising and marketing expenditure forecasts since 1989 and has been rated as the industry39s most consistently accurate forecasterTotal direct marketing promotion and advertising budgets will grow an estimated 36 percent in 2007 Total marketing communications investment growth will slump in 2009 however to only 3 percent with media advertising gaining 31 percent The greatest yeartoyear marketing decreases are in the nebulous quototherquot category which includes local sponsorships charitable contributions and executives39 discretionary budgetsWhile Myers projects overall ad spending will stay on the positive side through 2009 forecasts for consumer and trade sales promotion are less bullish with slight declines forecast in 2008 and 2009 Some of these declines result from repositioning of Procter ampamp Gamble budgets for instore marketing as advertising rather than trade allowances Myers also projects robust annual growth of 15 percent in 2007 and 2008 for event marketing which is also pulling budgets away from sales promotion Several major media companies especially consumer magazines are targeting event budgets by creating cobranded opportunities for marketers to combine magazine ads with relevant consumerfocused eventsMyers projects the largest declines in ad spending will be suffered by newspapers which will lose 46 percent in ad revenues in 2007 24 percent in 2008 and 45 percent in 2009 Broadcast network TV will increase 20 percent in 2007 and 32 percent in 2008 but Myers believes they will adjust downward in 2009 losing 40 percent Local and national spot TV which is the greatest beneficiary of political spending is forecast to gain 135 percent in 2008 after declines of 60 percent this year Terrestrial radio will decline 20 percent in 2007 and rebound with 25 percent growth next year before declining 40 percent in 2009Internet advertising including search and video is projected to increase 20 percent to 167 billion this year with 24 percent gains in 2008 and 285 percent growth in 2009 Myers forecasts The increased growth will result from a shift of advertisers39 budgets from television to online video although networks will be a primary beneficiary of these dollarsFull yearbyyear details on Myers39 spending estimates and forecasts from 2006 to 2009 for 18 media categories and six marketing categories including promotion events public relations and direct mail are available no cost at wwwjackmyerscomamp160amp160amp160amp160amp160amp160

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Ad Spending Will Grow 3% in 2007 and 7% in 2008: New Myers Forecasts

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Ad Spending Will Grow 3% in 2007 and 7% in 2008: New Myers Forecasts

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