How much do we spend in the US on advertising? Well in 2007
we spent 283 billion dollars. Yes 283 billion.
That may sound like a lot
but this level of growth 0.7% versus 2006 puts advertising's share of the 2007
GDP (2%) at it's lowest level since the recession year of 1982.
Even
with an uncertain market advertising spend is projecting a 3% growth in 2008
fueled by the Summer Olympics and the Presidential Elections. Being
interested in online spending I am very interested in the 2008 projections.
Below
is breakdown of the 2008 projections. The data was based on a December 2007
report from Universal McCann's Robert J. Coen as presented in the December 31st
issue of Advertising Age.
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Direct Mail - $63B
-
Broadcast TV - $48B
-
Newspaper - $42B
-
Cable TV Networks - $21B
-
Radio - $18B
-
Yellow Pages - $14B
-
Consumer Magazine - $14B
-
Internet - $12B
-
All Other - $58B
What may be surprising is the fact that online spending ranks
8th. Being in the industry our natural assumption is that online spending is in
the top 3. With that said though this segment over the past few years has had
double digit growth and is projected at a 16.5% increase from 2007. The next
closest in terms of growth will be spend on Cable TV at a 6% increase.
The flip side is the reduction in spend on traditional mediums such as
newspaper which is actually seeing a decrease of -1.8% of spend as compared to
2007 and Radio which is only seeing a 0.2% increase.
With the recent
trends in online spending continuing to increase. The success of Google's AdWords system
and now with Microsoft
commiting to a marketing focus now is the time to focus attention on the
medium.
This translates to very good news for online solutions and
providers as well. Especially around social media based solutions. The need for
social interaction with customers and users has now fully proliferated
traditional business and the marketing dollars are now being fully allocated to
deploying collaborative solutions as part of their integrated marketing
strategy. I see this trend continuing into the near future.
Read the complete post at http://feeds.feedburner.com/~r/Theblackfin-ThoughtsFromTomEdwards/~3/211169642/how-much-really.aspx