Advertising vs. Below-the-Line Shopper Marketing: The Economics

Scroll down for MyersBizNet39s detailed Advertising and PromotionalShopper Marketing Spending Data and Forecasts 20132020 Read more on the implications of Shopper Marketing for media and agencies here Marketers historically have invested an average 10 to 35 of their total marketing communications budgets to deliver reach and frequency of message exposure designed to drive awareness product interest and message retention These budgets are referred to as quotabovetheline advertisingquot The majority 65 to 90 of their budgets known as belowtheline are targeted to generating sales and direct returnoninvestment through consumer and trade sales promotion and direct marketing The exclusive MyersBizNet advertising and belowtheline data and forecasts reflects the accelerating shift of marketers39 budgets from promotional belowtheline budgets to digital media to capitalize on the opportunity to generate promotional returnoninvestment at more efficient costsAccording to the MyersBizNet forecasts belowtheline promotional and shopper marketing budgets will decline an average 27 annually through the end of the decade from 408 billion in 2013 to almost 333 billion in 2020 Marketers39 spending with abovetheline media will grow during this same period an average 42 annually from 171 to 240 billion See media by media details belowThe increased focus by marketers on achieving shopper marketing goals through digital media capabilities combined with agencies39 and marketers39 investments in automated buying are driving a bifurcation of media investmentsTraditional media investments will be focused on achieving greater cost efficiencies and capitalizing on the shift in supplydemand dynamics Fundamentally the primary goals of these budgets will remain awareness reach frequency and cost efficiencies with automated systems being the primary tool for more effective implementation resulting in downward pricing pressure on media suppliersMarketers will shift belowtheline budgets to media partners that are most able and willing to develop and implement promotional marketing and brandcentric programs and support resultsbased measurement tools As technology is put in place to manage transactional planning and buying media agencies will shift their creative and human resources to enhanced relationships with those media partners that offer scale quality content valued audiences multiplatform media integration and measurement promotional resources and specialized service and support teamsMyersBizNet members can access detailed yearbyyear data 20092020 at MyersBizNetcomOfficial Marketing Advertising Spending Data 2010 amp8211 2020Aboveamp8211theLine Advertising Spending MyersBizNet Media Business Reportamp160 2014 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 Official Marketing Advertising Spending Data 2010 2020 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 UPDATED 010314amp160amp160 Data reportedamp160 in 000000 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 ABOVETHELINE MEDIA ADVERTISING 2013 2014 2015 2020 Avg Annual Chng amp160 Avg Annual Chng amp160 Share Share Share Share 2013 2014 2015 amp160 2016 2020 Newspaper Advertising Print All Platforms 24686 amp160 24651 amp160 24287 amp160 23541 amp160 22 amp160 06 Traditional 20151 816 19345 785 18184 749 13597 578 62 amp160 55 Digital 4536 184 5307 215 6103 251 9945 422 157 amp160 103 Local ampamp National Spot Broadcast TVAll Platforms 21002 amp160 23080 amp160 21003 amp160 21205 amp160 40 amp160 05 Traditional 20064 955 22030 955 19827 944 19514 920 47 amp160 00 Digital 938 45 1050 45 1176 56 1691 80 113 amp160 76 CableSatellite Network Television All Platforms 26131 amp160 28031 amp160 30303 amp160 40322 amp160 79 amp160 59 Traditional 25009 957 26684 952 28552 942 35201 873 72 amp160 43 Digital 1122 43 1347 48 1751 58 5121 127 217 amp160 240 Broadcast Network TV All Platforms 19014 amp160 19582 amp160 19282 amp160 19916 amp160 07 amp160 07 Traditional 17438 917 17613 899 16820 872 15444 775 29 amp160 16 Digital 1576 83 1970 101 2462 128 4472 225 233 amp160 128 Consumer Magazines Advertising Print All Platforms 16413 amp160 16504 amp160 16697 amp160 16398 amp160 03 amp160 04 Traditional 14587 889 14222 862 13866 830 11423 697 27 amp160 38 Digital 1826 111 2282 138 2830 170 4975 303 230 amp160 120 Terrestrial Radio All Platforms 16629 amp160 17015 amp160 16841 amp160 17602 amp160 02 amp160 10 Traditional 15473 931 15628 918 15066 895 13493 767 19 amp160 21 Digital 1156 69 1387 82 1775 105 4109 233 210 amp160 184 Media Directed SocialPromotionSponsorshipsNative 7864 amp160 8808 amp160 9337 50 12839 amp160 94 amp160 66 Branded EntertainmentProduct Placement 7178 amp160 7537 amp160 7838 amp160 8911 amp160 51 amp160 26 OutofHomePlaceBased excl Cinema ampamp POI 7643 amp160 8010 amp160 8085 amp160 9166 amp160 37 amp160 26 Online Pure Play Display Banner Advertising 7401 amp160 7786 amp160 8222 amp160 7642 amp160 56 amp160 14 LocalRegional Cable TV All Platforms 4982 amp160 5194 amp160 4978 amp160 5061 amp160 14 amp160 07 Traditional 4826 969 5019 966 4769 958 4642 917 18 amp160 01 Digital 156 31 174 34 209 42 419 83 133 amp160 152 Broadcast Syndication All Platforms 2367 amp160 2287 amp160 2194 amp160 1935 amp160 28 amp160 25 Traditional 2256 953 2166 947 2036 928 1655 855 38 amp160 40 Digital 111 47 122 53 158 72 280 145 167 amp160 122 Videogame AdvertisingVirtual Currency 1601 amp160 1921 amp160 2248 amp160 3545 amp160 183 amp160 96 Mobile ampamp Apps Advertising incl Mobile Search 4146 amp160 6633 amp160 9949 amp160 26175 amp160 633 amp160 220 Cinema Advertising All Platforms 799 amp160 855 amp160 885 amp160 1013 amp160 72 amp160 28 Traditional 798 999 854 999 883 998 1011 998 72 amp160 28 Digital 1 01 1 01 1 02 2 02 150 amp160 80 Digital PlaceBased Video 920 amp160 1036 amp160 1158 amp160 2040 amp160 127 amp160 120 Internet Originated Radioamp160 883 amp160 1219 amp160 1646 amp160 4203 amp160 370 amp160 207 Online Pure Play Video Content Advertisingamp160 1372 amp160 2195 amp160 3293 amp160 12502 amp160 500 amp160 310 Interactive VOD ampamp Addressable TV Advertising 167 amp160 233 amp160 350 amp160 5139 amp160 433 amp160 720 TOTAL US Only 171196 00 182578 00 188594 50 239157 00 35 amp160 49 Source MyersBizNet Media Business Reportamp169 copyright 2014 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 Official Marketing Advertising Spending Data 2010 amp8211 2020Belowamp8211theLine PromotionalShopper Marketing Spending MyersBizNet Media Business Reportamp160 2014 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 Official Marketing Advertising Spending Data 2010 2020 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 UPDATED 010614amp160amp160 Data reportedamp160 in 000000 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 BELOWTHELINE PROMOTION SHOPPER ampamp DIRECT MARKETING 2013 2014 2015 2020 Avg Annual Chng amp160 Avg Annual Change amp160 Share Share Share Share 2013 2014 2015 amp160 2016 2020 DirecttoTrade PromotionSlotting Allowances 167067 amp160 159549 amp160 153965 amp160 122883 amp160 33 amp160 44 Consumer Sales PromotionShopper MarketingCoupons 134098 amp160 128347 amp160 123018 amp160 80391 amp160 41 amp160 81 Traditional 130108 970 122561 955 115208 937 59332 738 55 amp160 124 Digital 3990 30 5785 45 7810 63 21060 262 367 amp160 220 Direct Mail EMail Marketing All Platforms 43272 amp160 41867 amp160 38973 amp160 30237 amp160 21 amp160 49 Traditional 39655 916 38069 909 35023 899 26139 864 50 amp160 57 Digital 3617 84 3798 91 3950 101 4098 136 50 amp160 08 ExperientialEvent Marketing 19289 amp160 20061 amp160 20462 amp160 24651 amp160 27 amp160 38 Search Marketing Online 20360 amp160 22396 amp160 25083 amp160 36435 amp160 133 amp160 78 Yellow Pages Print Digital 8467 amp160 7580 amp160 7014 amp160 5825 amp160 98 amp160 36 Traditional 6337 748 5450 719 4905 699 3991 685 127 amp160 40 Digital 2130 252 2130 281 2109 301 1834 315 13 amp160 27 BusinesstoBusiness Magazines Print All Platforms 5197 amp160 4924 amp160 4821 amp160 3951 amp160 50 amp160 39 Traditional 4576 881 4210 855 3999 830 3029 767 77 amp160 54 Digital 621 119 714 145 821 170 922 233 150 amp160 24 Offline Public Relations 4161 amp160 3995 amp160 3835 amp160 2831 amp160 37 amp160 58 Custom PublishingSite Development Print ampamp Digital 1599 amp160 1511 amp160 1456 amp160 980 amp160 51 amp160 76 Traditional 1041 651 916 606 861 591 519 529 110 amp160 96 Digital 559 349 595 394 595 409 461 471 75 amp160 49 Social MarketingWOMConversational Marketing 4620 amp160 6237 amp160 8420 amp160 24546 amp160 367 amp160 240 TOTAL US Only 408130 amp160 396465 amp160 387046 amp160 332731 amp160 23 amp160 30 Source MyersBizNet Media Business Reportamp169 copyright 2014 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 MyersBizNet Inc Jack Myers and employees accept no responsibility for any actions taken as a result of this forecast amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 20132020 are estimatesamp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 Facebook display ads included in display category amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 References Barclays Capital BIAKelsey CAB Carat Credit Suisse Deutsche Bank Equity Research DMA eMarketer Goldman Sachs GroupM IAB JPMorgan Chase amp160 amp160 amp160 amp160 Kantar Research Universal McCannMagna Global Morgan Stanley MPA Needham Research Nielsen PQ Media Alternative Media Research Series PriceWaterhouseCoopers RAB TvBamp160amp160 amp160 amp160 amp160 amp160 UBS Verona Suhler Stevenson Communications Industry Forecast Wachovia Wedbush Zenith Optimedia IAB PricewaterhouseCoopers amp160 amp160 amp160 amp160 Excludes World Cup Revenues Includes political revenues amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 This forecast includes Olympics NFL NCAA and amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 other sports programming amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 If you are receiving this report you are a registered member to MyersBizNet or are receiving it as part of a registered corporate membership As a member Jack responds personally to your emails requests and comments He is available to speak at your company events In addition to MyersBizNet Media Business Reports your membership underwrites MediaBizBloggerscom Women in Media Mentoring Initiative MyersBizNet Wall St Report MyersBizNet 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 member you have full access to all archives and reports at wwwjackmyerscom If you require your ID and password contact maryannjackmyerscom

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Advertising vs. Below-the-Line Shopper Marketing: The Economics

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