Advertising's Declining Share of Total Marketing Spend Reflects Procurement Influence

Between 2007 and 2012 advertising39s slice of the total marketing pie is forecast by Jack Myers Media Business Report to decline from 307 to 259 That represents more than 100 billion that is shifting away from traditional media spending to alternative marketing options during this fiveyear span Even with hundreds of millions of dollars invested in effectiveness engagement and emotional connectionsamp8482 research studies by media companies and agencies advertising remains a cost center that is increasingly subjected to procurement oversight and intensifying cost controlsIn contrast trade and consumer promotion investments are often under the management of corporate sales organizations and a priority for brand management teams less subjected to the demands of procurement officersFor decades advertisers agencies and media sellers have invested in a search for the quotholy grailquot of standardized advertising returnoninvestment metrics in an effort to demonstrate the ROI value of advertising But the goal of transitioning media spending from a cost center to an investment with standardized measureable ROI is as distant today as it was several decades ago Until media companies and agencies begin connecting ad campaigns to marketers39 trade and consumer sales promotion objectives they will continue to be viewed as a cost center rather than an investment Media and advertising can transcend traditional values when they can prove effectiveness in delivering measureable distribution gains and increased consumer sales not when they simply deliver impressions amp8211 even when those impressions are targeted to engaged and behaviorally relevant audiencesTo comment visit wwwjackmyersthinktankcom JackMyersThinkTank and MediaBizBloggers are free and underwritten as an industry service by corporate subscribers to Jack Myers Media Business Report For subscription information visit wwwmyersreportcom Visit the archives of JackMyersThinkTank and MediaBizBloggers Jack Myers can be contacted directly at jmjackmyerscom Source of advertising and promotion spendinginvestment data Jack Myers Media Business Report Economic ForecastsEmotional Connections is a registered trademark of Jack Myers for research studies on media value and effectiveness Jack Myers invested more than 15 million in Emotional Connections research between 1998 and 2006 underwritten by more than 20 media companies

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Advertising's Declining Share of Total Marketing Spend Reflects Procurement Influence

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Jack Myers

"About That with Carl Mayer:" Alaina Donnellon (Episode 10: Political Spending) - By Carl Mayer

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Advertising's Declining Share of Total Marketing Spend Reflects Procurement Influence

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