Media 2020 Vision: Advertising & Marketing Revenues -- Winners and Losers
Originally published November 2010
Among traditional media, cable television is the big winner in generating increased ad revenues over the next decade, according to the new Vision 2020: Media, Advertising & Marketing Economic Health Report 2010-2020 being issued next month by Jack Myers Media Business Report. Total advertising and marketing communications budgets are projected to grow 25% from $601.2 billion in 2010 to $750.6 billion in 2020. Marketers' investments in cable network and local/regional cable television advertising will increase to a 5.5% combined share of the total marketing communications pie in 2020 from 4.2% in 2010. This represents incremental annual industry revenues of nearly $16 billion, from an estimated $25.5 billion in 2010 to $41.2 billion in 2020. Almost half this growth will be generated by increases in cable's digital media advertising inventory. Broadcast network and local broadcast station combined share of marketers' budgets is forecast to decline to 5.0% in 2020 from 7.0% in 2010, a loss of $4.6 billion in annual revenues, from $41.7 billion to $37.1 billion.
The biggest market share winner is forecast by Myers to be Social Media/Word-of-Mouth/Conversational Marketing, which is projected to increase from only $1.2 billion in marketing spend in 2010 to $46.5 billion annually in 2020. (Almost all Facebook and MySpace revenues (estimated between $2.2 and $2.5 billion in 2010) are included in Myers' Online Originated Display Advertising and Online Originated Video Content Advertising categories).
Jack MyersMedia Business Report will be releasing to subscribers our full 2010-2020 report on 55 advertising and marketing budget categories in early December. For information on password access, contact Maryann@jackmyers.com.
| Jack Myers Media Business Report | |||
| Media, Advertising & Marketing Economic Health Report 2010-2020 | |||
| SHARE OF TOTAL MARKETING | |||
| COMMUNICATION | |||
| BUDGETS | |||
| Advertising/Marketing Share Winners | 2010 | 2020 | |
| Social Media/WOM/Conversational Marketing | 0.2 | 6.2 | |
| Search Marketing | 2.1 | 5.5 | |
| Media Directed Promotion/Events/Sponsorship | 1.9 | 5.2 | |
| Cable/Satellite Network Television Advertising | 3.4 | 4.6 | |
| Experiential/Event Marketing | 3.1 | 3.5 | |
| Mobile & Apps Advertising | 0.2 | 2.3 | |
| Online Originated Video Content Advertising | 0.1 | 1.9 | |
| Branded Entertainment/Product Placement | 1.3 | 1.7 | |
| Interactive/VOD & Addressable Advertising | 0.0 | 1.3 | |
| Out-of-Home/Place Based | 1.1 | 1.1 | |
| Local/Regional Cable TV | 0.8 | 0.9 | |
| Videogame Advertising | 0.2 | 0.7 | |
| Point-of-Influence/GPS | 0.1 | 0.5 | |
| Custom Publishing/Site Advertising | 0.3 | 0.4 | |
| Cinema Advertising | 0.1 | 0.2 | |
| Satellite/Internet Originated Radio | 0.1 | 0.2 | |
| Advertising/Marketing Share Losers | 2010 | 2020 | |
| Direct-to-Trade Promotion/Slotting Allowances | 27.6 | 20.4 | |
| Consumer Sales Promotion/FSI/Incentives | 24.5 | 20.5 | |
| Direct Mail/eMail Marketing | 10.4 | 7.2 | |
| Newspaper Advertising | 4.9 | 3.3 | |
| Local & National Spot Broadcast TV | 3.9 | 2.6 | |
| Consumer Magazine Advertising | 2.7 | 2.5 | |
| Broadcast Network TV | 3.1 | 2.4 | |
| Terrestrial Radio | 2.6 | 1.8 | |
| Yellow Pages | 2.0 | 1.1 | |
| Online Originated Display Advertising/Rich Media | 0.9 | 0.8 | |
| Business-to-Business Magazines | 1.1 | 0.6 | |
| Offline Public Relations | 0.8 | 0.4 | |
| Broadcast Syndication | 0.6 | 0.4 | |
Source: Jack Myers Media Business Report.
Media 2020 Vision: Media, Advertising & Marketing Economic Health Report 2010-2020
Full report available to subscribers effective December 2010 at www.jackmyers.com
Jack Myers
Media Ecologist, Founder: MediaVillage and Advancing Diversity Hall of Honors Jack Myers is a media ecologist and founder of MediaVillage, the media and advertising community’s leading resource for market intelligence, education, business connection…
