Skip to main content

Online Ad Spend Exceeds TV-Radio-Movies

American advertisers are cutting back. Spending on 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 a market study 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 takes a 360-degree look at total U.S. advertising and marketing spending targeting both businesses and consumers, and covering 31 advertising and marketing methods.

Their 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.

Outsell's key findings include:

- Companies are spending 61.8 percent of their online ad/marketing budgets on their own web sites, siphoning dollars away from other options. This accounts for $65.1 billion. As a result, publishers are beginning to offer their own advertising or marketing services to recapture lost revenue.

- No surprise, 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 advertiser's 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).

- Advertiser's 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).

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

Credit Scoring Service Spending will Reach $44B

Credit scoring is a method that lenders use to predict the probability a borrower or counter-party will default on loans, or incur additional charges for repayment -- also known as measuring credit worthiness. The method is a key tool in making credit affordable for individuals and businesses. It links credit products to risk potential, connecting borrowers to secondary capital markets and increasing the amount of funds available. This securing process establishes risk predictability dependent on a number of factors, determined by financial indicators and other publicly available information reported by the credit bureaus. Credit Score Market Development According to the latest worldwide market study by Juniper Research, they now forecast credit scoring services will grow by 67 percent to $44 billion by 2028. Juniper anticipates that emerging markets will experience the greatest growth -- projecting the African & Middle Eastern region to grow by 117 percent over the forecast period

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve