Total marketing communications investments have remained flat since 2010 and are projected to increase only 2.8% from $580 billion in 2010 to a projected $596 billion in 2020. When factoring inflation, the real dollars invested by marketers in the U.S. marketing and media economy has declined precipitously. A new analysis by MediaVillage, which has been tracking media and marketing expenditures since 1988, reflects the value of digital for replacing the steady declines in legacy media and marketing expenditures. However, we also conclude that the fragmentation and commoditization of marketing and media, the effectiveness of search and social advertising for achieving corporate below-the-line sales objectives, and the increased involvement of procurement officers in the marketing budgeting process has enabled marketers to reduce their corporate commitment to marketing. (Scroll down for more of Jack Myers’ commentary.)
Digital Dollars +20%: Sustaining Growth in a Flat Marketing Economy
