EXCLUSIVE: 2017 Ad Spending UP 3.3%; Total MarCom Investments Down 0.6%

MyersBizNet, as the only market forecaster that studies both above and below-the-line marketing investments, provides a more relevant and contemporary perspective for agencies, media sellers and marketers. For example, the belief that digital marketing investments have surpassed linear/legacy spending is grossly exaggerated. Search and social marketing investments have been generated primarily through a shift of below-the-line promotional budgets, making comparisons of total digital investments to above-the-line media not only misleading but dangerous to those whose valuation is dependent on Wall St. perceptions of their business vitality.

In fact, total digital investments represent only 28% of all marketing communications budgets and are projected by MyersBizNet to grow to 32.6% of total marketing communications in 2018. Above-the line budgets, much of which accrues to legacy media categories, are projected to increase from 28% of total marketing spend in 2010 to 40% of marketing budgets in 2020, based on exclusive MyersBizNet forecasts. Much-maligned broadcast network television budgets are projected by MyersBizNet to grow 22% from $18.5 billion in 2010 to $22.5 billion in 2020.

In response to their expanding social and eCommerce businesses, marketers are altering their organizational and agency structures to integrate the once-separated promotional and advertising responsibilities, a reality agencies are rapidly reacting to with their own refocusing of business models and reorganization. With the gains from digital/social dimes beginning to equal the declines in traditional revenues at legacy media companies, an understanding of the above-and-below-the-line dynamics reported in the MyersBizNet data is essential to all those who evaluate media and advertising economics.

The full Jack Myers TomorrowToday economic report includes data and forecasts breaking out the digital and linear/legacy spending for every marketing and media category. Below is a snapshot of ten of the 28 categories included in the full report. Additional reports are available to MyersBizNet members here covering 2000 through 2020.