Slip-sliding away
From Jack Myers, a report which states that advertising's share of marketing budget has declined 12% within the past decade.
In 1998, advertising represented 34.9% of marketing budgets, direct marketing 10.1% and sales promotion (including events and PR....why I don't know) at 55%. This, compared to 2008's data of 30.6%, 22.8% and 46.6% respectively.
What's interesting is that during this time, total marketing budgets have increased by 94% (advertising for example has increased in absolute terms from $136.8bn to $232.50)
2 insights/takeaways worth noting:
- As media continues to become more digital, transparent and accountable, advertising will likely see a fairly noticeable "correction" in terms of its total spend within the next 10 years.
- Currently, advertising represents just 30% of the total pie. And shrinking. No doubt we'll see exponential spend on emerging media and conversational marketing to take on increasingly significant proportions.
