Third Annual Outsell, Inc. Study Forecasts $412.4 Billion in 2008 Advertising and Marketing Spending
Unique Outsell Study Shows Shift in Spending to Companies’ Own Sites
BURLINGAME, Calif. & LONDON--(BUSINESS WIRE)--Spending on total U.S. advertising and marketing will grow 3.9
percent in 2008 to reach $412.4 billion, with the advertising portion
reaching $249.1 billion, according to the third annual ad spending
report by Outsell, Inc. Reflecting the overall economic slowdown, the
growth rate for advertising and marketing spending has declined from 5.8
percent in 2007.
Outsell is the only research firm to take a 360-degree look at total
U.S. advertising and marketing spending targeting both businesses and
consumers, and covering 31 advertising and marketing methods. The report
covers five key media types: online, print, events, TV/radio and others.
Outsell surveyed 1,088 U.S. advertisers on their spending plans for the
year. Among the significant findings:
-
Companies are spending 61.8 percent of their online ad/marketing
budgets on their own sites, siphoning dollars away from other options.
This accounts for $65.1 billion. As a result, publishers are beginning
to offer their own advertising/marketing services to recapture lost
revenue.
-
The fastest growing of all ad types is online, which is expected to
grow 12.3 percent in 2008 to $105.3 billion (or $40.2 billion
excluding advertisers’ spending on their own
sites). This represents a major turning point in online spending,
which now exceeds TV/radio/movies for the first time ($98.5 billion).
-
Advertisers’ spending on traditional media
remains significant—with print capturing
35.5 percent of spending ($147.0 billion) and events at 12.5 percent
of the total ($51.7 billion). Fifty-four percent of advertisers spread
budgets across three or more media types.
-
Out of 26 methods measured for effectiveness, advertisers rate their
Websites as the best for lead generation (75 percent effective),
followed by exhibitions (66 percent), custom print publications (65
percent), direct mail marketing (64 percent), and trade magazines (64
percent).
-
When asked, “If you could only track three [new
media] metrics, what would they be?”
advertisers point most frequently to cost per sale (46 percent), cost
per lead (37 percent), and cost per click (32 percent).
The Outsell report includes Essential Actions for publishers who want to
remain competitive in the current advertising environment. Companies
that would like to purchase the report should visit: http://www.outsellinc.com/store/products/741?refid=pr741.
Journalists should contact Dawn Ringel, Warner Communications,
781-449-8456 or dawn@warnerpr.com.
ABOUT OUTSELL, INC.:
Outsell is the only research
and advisory firm focused on the publishing, information, and education
industries. Our international team provides independent, fact-based
analysis and actionable advice about competitors, markets, operational
benchmarks, and best practices, so our clients thrive and grow
in today's fast-changing digital and global environment. Outsell’s
headquarters are in Burlingame, CA, US and London, UK. Visit us at www.outsellinc.com.