Traditional Ad Spending Unchanged Since 2000. Compelling New Data on Digital vs. Traditional Media Economy.

How important is it for traditional media companies to invest aggressively in digital media organizations and enterprises Consider that ad spending in 12 nondigital advertising categories is the same in 2010 as it was a decade ago in 2000 1625 billion before factoring in inflation and will remain unchanged through 2012 Digital advertising including search and social media represented 120 of total 2009 ad spending and related marketing In 2012 digital advertising is projected to represent 172 of ad spending This data has been developed exclusively for subscribers to Jack Myers Media Business Report See charts below and view full Myers forecasts and historical data hereYou are receiving this email as a corporate subscriber to Jack Myers Media Business Report Redistribution in any form except among approved individuals within your company is prohibited As a subscriber you have full access to all archives and reports at wwwjackmyerscom If you require your ID and password contact maryannjackmyerscom Twelve nondigital advertising categories print TV radio OOH etc are projected to be flat in 2010 with 03 growth to decline 29 in 2011 and to gain 29 in 2012 By comparison six digital advertising and marketing categories will average 143 annual growth 112 in 2010 137 in 2011 and 210 in 2012Even during the advertising recession years of 2008 and 2009 digital advertising expenditures grew 101 and 56 respectively During those same two years nondigital advertising spending declined 72 and 169The daunting economics of traditional advertising are stunning The overall stability of the nondigital media sector can be read as somewhat good news and the growth of many traditional media companies will be spurred by their digital investments and expansion But consider that the total 1625 billion in 2012 nondigital ad spending is exactly the same as in 2000 Spending recovered to 2103 billion in 2007 but the industry completely lost those gains in 2008 and 2009DIGITAL ADVERTISING OVERVIEWOnline search marketing represents 471 of total digital advertising and marketing Although search is forecast to increase 67 annually between 2010 and 2012 it will decline in share to 384 in 2012 as marketers shift more funds into videogame ads 263 annually online video 650 mobile 426 and social media 603 Online display advertising is forecast to increase only 50 annually between 2010 and 2012 primarily due to unlimited supply and improved tools for online buying and sellingORGANIZATIONAL ISSUES AND OPPORTUNITIESAccording to industry sources the percentage of digital ad revenues at the typical traditional media company such as TV networks magazines radio and newspapers is well under 10 The percentage of their investment in advertising sales organizational resources devoted to digital is less than five percent Compared to digitalonly media companies traditional media companies are at a distinct competitive disadvantageTraditional media companies39 greatest advantage is the consumer equity value of their content brands but to date they have only marginally mined this value in the digital ad world The challenge for traditional media companies is to identify how they can increase their investments in digital content sales and marketing without jeopardizing their traditional strengthsDIGITAL VS TRADITIONAL ADVERTISING EXPENDITURES Jack Myers Media Business Report Advertising Expenditures Report 20102012 Digital Only UPDATED 051010 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 ADVERTISING 2010 2011 2012 amp160 Growth Share Growth Share Growth Share amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 Videogame Advertising 150 amp160amp160amp160amp160amp160 1045 43 240 amp160amp160amp160amp160amp160 1295 46 400 amp160amp160amp160amp160amp160 1813 54 Online Display Advertising 55 amp160amp160amp160amp160amp160 8387 342 45 amp160amp160amp160amp160amp160 8765 314 50 amp160amp160amp160amp160amp160 9203 272 Online Video Advertising 550 amp160amp160amp160amp160amp160 1573 64 650 amp160amp160amp160amp160amp160 2596 93 750 amp160amp160amp160amp160amp160 4543 134 Mobile Advertising 280 amp160amp160amp160amp160amp160amp160amp160amp160amp160 914 37 400 amp160amp160amp160amp160amp160 1280 46 600 amp160amp160amp160amp160amp160 2048 61 Online Search Marketing 80 11556 471 60 12249 439 60 12984 384 Online Social WOM ampamp Conversational Marketingamp160 350 1080 44 600 1728 62 850 3197 95 Total 112 24555 1000 137 27913 1000 210 33788 1000 Source Jack Myers Media Business Reportamp169 copyright 2010 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 Jack Myers Media Business Report Advertising Expenditures Report 20102012 Traditional Media UPDATED 051010 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 ADVERTISING 2010 2011 2012 amp160 Growth Share Growth Share Growth Share amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 Newspapers 80 amp160amp160amp160 27112 167 50 amp160amp160amp160 25757 163 52 amp160amp160amp160 24417 150 Broadcast Network Television 48 amp160amp160amp160 17635 108 20 amp160amp160amp160 17987 114 28 amp160amp160amp160 17484 108 Cable Network Television 72 amp160amp160amp160 19782 122 50 amp160amp160amp160 20771 132 70 amp160amp160amp160 22225 137 Broadcast Syndication 50 amp160amp160amp160amp160amp160 3188 20 30 amp160amp160amp160amp160amp160 3284 21 175 amp160amp160amp160amp160amp160 2709 17 Local ampamp National Spot Broadcast TV 106 amp160amp160amp160 21550 133 113 amp160amp160amp160 19100 121 157 amp160amp160amp160 22100 136 LocalRegionalSpot Cable TV 172 amp160amp160amp160amp160amp160 4662 29 80 amp160amp160amp160amp160amp160 4289 27 120 amp160amp160amp160amp160amp160 4804 30 Terrestrial Radio 44 amp160amp160amp160 14303 88 36 amp160amp160amp160 13788 87 62 amp160amp160amp160 14643 90 Consumer Magazines 12 amp160amp160amp160 15116 93 25 amp160amp160amp160 15494 98 56 amp160amp160amp160 16362 101 BusinesstoBusiness Magazines 85 amp160amp160amp160amp160amp160 6008 37 00 amp160amp160amp160amp160amp160 6008 38 40 amp160amp160amp160amp160amp160 6249 38 Custom Publishing 86 amp160amp160amp160 16901 104 65 amp160amp160amp160 15803 100 20 amp160amp160amp160 16119 99 OutofHomePlaceBased excl Cinema 32 amp160amp160amp160amp160amp160 6402 39 20 amp160amp160amp160amp160amp160 6530 41 40 amp160amp160amp160amp160amp160 6791 42 Yellow PagesPrint 100 amp160amp160amp160amp160amp160 9932 61 80 amp160amp160amp160amp160amp160 9138 58 60 amp160amp160amp160amp160amp160 8589 53 Totalamp160 03 amp160162592 1000 29 amp160157949 1000 29 amp160162492 1000 Source Jack Myers Media Business Reportamp169 copyright 2010 amp160 amp160 amp160 amp160 amp160 amp160 amp160 amp160 Source Jack Myers Media Business Reportamp8482amp169 copyright 2010 MEDIAdvisory Group LLCContents may be republished with source as Jack Myers Media Business Report May 201020102012 are estimates 39s are in billionsMEDIAdvisory Group LLC Jack Myers and employees accept no responsibility for any actions taken as a result of this forecastReferences Barclays Capital BIAKelsey CAB Carat Credit Suisse Deutsche Bank Equity Research DMA eMarketer Goldman Sachs GroupM IAB JPMorgan Chase Kantar Research Magna Global Morgan Stanley MPA Needham Research Nielsen PQ Media Alternative Media Research Series PriceWaterhouseCoopers RAB TvB UBS Veronis Suhler Stevenson Communications Industry Forecast Wachovia Wedbush Zenith OptimediaThis forecast excludes Olympics but includes NFL NCAA and other sports programming Includes Hispanic Media although Jack Myers Media Business Report also issues separate data for Hispanic Mediaamp160amp160

CLICK TO DOWNLOAD THE MYERS REPORT RESEARCH & WHITEPAPERS

Traditional Ad Spending Unchanged Since 2000. Compelling New Data on Digital vs. Traditional Media Economy.

Author

Publish date

Channel

Jack Myers

Empowering Women in Media: Insights from Industry Leaders (Video) - By E.B. Moss

More Videos:

CLICK TO DOWNLOAD THE MYERS REPORT RESEARCH & WHITEPAPERS

Traditional Ad Spending Unchanged Since 2000. Compelling New Data on Digital vs. Traditional Media Economy.

Enjoying This Commentary? There's More to Love

Jack Myers

Empowering Women in Media: Insights from Industry Leaders (Video) - By E.B. Moss

The payment was successful

Cookies