Total advertising spending is forecast to grow 3.3% in 2017 to $190.3 billion, spurred by 20% growth in digital spending that is offsetting 6.7% declines in linear/legacy media investments, according to the 29th Annual Jack Myers TomorrowToday Official Marketing/Advertising Industry Spending Data & Forecast. MyersBizNet publishes the only independent and most thorough analysis of marketing and media investments, covering 2000-2020 and including digital and linear/legacy spending in 28 media and marketing categories. 2016 data plus 2017 and 2018 forecasts are available for download below. Both above-and-below-the-line marketing communications investments are included. Full reports are available exclusively to MyersBizNet member companies at www.MediaVillage.com and by contacting email@example.com. Myers’ 2016 data was developed in association with Standard Media Index, which publishes regular ad spending data. Total marketing communications budgets are forecast to decline slightly (-0.6%) in 2017, resulting from 2.5% below-the-line budget reductions.
MyersBizNet, as the only market forecaster that studies both above and below-the-line marketing investments, provides a more relevant and contemporary perspective for agencies, media sellers and marketers. For example, the belief that digital marketing investments have surpassed linear/legacy spending is grossly exaggerated. Search and social marketing investments have been generated primarily through a shift of below-the-line promotional budgets, making comparisons of total digital investments to above-the-line media not only misleading but dangerous to those whose valuation is dependent on Wall St. perceptions of their business vitality.
In fact, total digital investments represent only 28% of all marketing communications budgets and are projected by MyersBizNet to grow to 32.6% of total marketing communications in 2018. Above-the line budgets, much of which accrues to legacy media categories, are projected to increase from 28% of total marketing spend in 2010 to 40% of marketing budgets in 2020, based on exclusive MyersBizNet forecasts. Much-maligned broadcast network television budgets are projected by MyersBizNet to grow 22% from $18.5 billion in 2010 to $22.5 billion in 2020.
In response to their expanding social and eCommerce businesses, marketers are altering their organizational and agency structures to integrate the once-separated promotional and advertising responsibilities, a reality agencies are rapidly reacting to with their own refocusing of business models and reorganization. With the gains from digital/social dimes beginning to equal the declines in traditional revenues at legacy media companies, an understanding of the above-and-below-the-line dynamics reported in the MyersBizNet data is essential to all those who evaluate media and advertising economics.
The full Jack Myers TomorrowToday economic report includes data and forecasts breaking out the digital and linear/legacy spending for every marketing and media category. Below is a snapshot of ten of the 28 categories included in the full report. Additional reports are available to MyersBizNet members here covering 2000 through 2020.