Spending on total US advertising and marketing will grow 3.9% 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% in 2007.
Outsell surveyed 1,088 US advertisers on their spending plans for the year. The report covers five key media types: online, print, events, TV/radio and others.
It found that companies are spending 61.8% 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% 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).
Last month, the Interactive Advertising Bureau announced that US internet advertising revenues reached $5.8 billion in the first quarter of 2008, an increase of 18.2% over the same period in 2007 (see US Internet Advertising Revenues Up 18.2% YoY in Q1).
Advertisers’ spending on traditional media remains significant, said Outsell – with print capturing 35.5% of spending ($147.0 billion) and events at 12.5% of the total ($51.7 billion). Fifty-four percent of advertisers spread budgets across three or more media types.
A recent report from IDC forecast that worldwide spending on internet advertising will total $65.2 billion in 2008, representing nearly 10% of all ad spending across all media (see Global Online Adspend To Total $65.2bn In 2008).
IDC projects 15-20% annual growth throughout the forecast period, with this share reaching 13.6% by 2011 as internet ad spending grows to $106.6 billion worldwide.
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