Advertising's Declining Share of Total Marketing Spend Reflects Procurement Influence

©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.

Jack Myers, 8/24/10

Between 2007 and 2012, advertising’s slice of the total marketing pie is forecast by Jack Myers Media Business Report to decline from 30.7% to 25.9%. That represents more than $100 billion that is shifting away from traditional media spending to alternative marketing options during this five-year span. Even with hundreds of millions of dollars invested in effectiveness, engagement and emotional connections™ research studies by media companies and agencies, advertising remains a cost center that is increasingly subjected to procurement oversight and intensifying cost controls.

In contrast, trade and consumer promotion investments are often under the management of corporate sales organizations and a priority for brand management teams, less subjected to the demands of procurement officers.

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