The Hidden $50 Billion Available to Media & Advertising Companies from Below-the-Line Marketing Budgets

Originally published September 2009

In 2009, total advertising revenues are projected to be $201.8 billion and total marketing revenues are projected to be $700 billion. In 2015, advertising revenues are projected by Jack MyersMedia Business Report to grow to $253.2 billion while total marketing expenditures (including advertising) increase to $809.1 billion. An estimated $1.0 billion in 2010, growing to $17 billion in 2015 is available in incrementalrevenues to media companies if just 0.2% to 3.5% of spending shifts to traditional media from below-the-line non-advertising marketing categories annually. Thanks to the Internet, mobile and interactive TV, below-the-line revenues are now accessible to broadcast networks, cable networks, magazines, newspapers, out-of-home media, online and other traditional advertising-dependent media in conjunction with inventory-based media buys. While the music and sports industries are successfully tapping into these budgets, almost no effort is being made by traditional media to capture them. Unless the industry responds, an estimated $46 billion could be left on the table between 2010 and 2015, too obvious an opportunity to ignore as the industry struggles for survival. Jack MyersMedia Business Report has been focusing on this issue for more than two decades and continues our series of commentaries outlining the potential business models for traditional media in this week's report for corporate subscribers.