Retail sales will dip this year, but that hasn’t stopped retailers from plowing more money into marketing. Retail ad expenditures are up 9% and their promotions spend is up 16.6%. This 60-page report, "U.S. Retailing: Sales, Marketing and the Move to Online," details game-changing shifts. While traditional advertising is forecast to increase 5% over the next five years, promotions and non-ad marketing will increase at five times that rate. And the biggest gainer of all, of course, will be interactive marketing. The report includes an appendix that details online and offline marketing expenditure trends for 34 individual business categories.
Social networks are increasing their ad revenues at a tremendous pace and before long it could take a toll on ad spending at local media Web sites. In this latest paper, we track the advertising and promotion spending for social networking as well the new rules of marketing under this new “anti-mass” media. Included in the paper is the latest local and national ad and promotions spending projections for social networks by DMA.
It’s an “even” year, which means another uptick in political advertising. That’s good news for broadcasters – where most of political advertising winds up – and good news for just about everybody else, too, because of a recent Supreme Court ruling that should open the door to about $400 million more political ad spending this year. A decade-long uptick in political spending has forced a crooked smile on our forecast. It starts at $4.2 billion this year and zig-zags up to $41 billion in the 2012 presidential election year. Online is still barely 1% of all political advertising, just $44 million this year. Our 24-page report includes 12 charts and an appendix estimating political ad spending in each of the 210 DMAs.
Coupon use is up an amazing 36% over last year, but retailers are beginning to increase their use of the Internet as a distribution channel, particularly for higher-priced items. While the Internet still accounts for less than 5% of all coupon redemptions, Internet coupons represent 20% of the value of those redemptions. Our latest research quantifies why so many media companies are redoubling their efforts on launching coupon and shopping Web sites and mobile applications.
It may be a horrible year for advertising overall, but not for local online – and certainly not for some companies seeing double- and even triple-digit growth for local operations. Local online advertising is growing at a 12% clip this year, and we’ve taken a look at 2010 and expect further growth. This report forecasts 2010 local online sales to hit $14.9 billion, or 5% higher than where we’re expecting things to end up this year. While mobile is a hot topic, we’re projecting it to be a relatively small category locally – only $500 million – in 2010.
In our latest research and analysis paper we discover the local search-advertising marketplace may be headed for a shakeout where less-sophisticated affiliates and resellers of search advertising could see their business models collapse and their advertisers flee. Scooping up the business will be savvy affiliates and resellers who are able to optimize SEM performance through software tools and reporting that show actual ROI to advertisers.
The Internet has put another print medium in its crosshairs: direct mail. The popularity of e-mail marketing is set to skyrocket as a result. This report details our forecast for a dramatic 39% drop in direct mail and corresponding rise in e-mail advertising – which was already at $12.1 billion last year. E-mail, in fact, quietly became the No. 1 interactive advertising format last year, surpassing banners and search advertising.
Last year $12.6 billion was spent in online advertising by local advertisers. Sales were dominated by pure-play Internet companies with no ties to legacy media However, for the first time since we began tracking local shares in 2001, pure-play companies lost ground. It’s all outlined here in our 7th annual revenue survey of over 6,000 local Web sites.
Are small- and medium-sized business owners changing their spending habits? Are they abandoning traditional media for the Internet? Is the recession a tipping point for their ad spend?
