CMOs See Traditional Media Ad Spend Falling

Spending on traditional advertising -- meaning media advertising that does not use the Web or other digital channels -- will decrease 2.1% over the next year, according to a survey of 410 marketing executives conducted by the Duke University Fuqua School of Business from July 16 to August 6, 2013.

The forecast is especially noteworthy because overall execs polled for the CMO Survey also predicted a 4.3% increase in marketing budgets over the next year. No surprise -- much of that increase will come from a 10.1% leap n digital marketing spending, which is expected to grow across the board.

By category, marketing execs expect digital advertising for business-to-business products to increase 9.5%, for B2B services 9.9%, for business-to-consumer products 11.1%, and for B2C services 10.6%.

Across the same categories, the respondents see traditional media advertising decreasing 2.4% for B2B products and 3.9% for B2B services. A modest 0.8% increase is predicted for B2C products, but this is paired with a 1.9% decrease for B2C services.

Turning to other marketing disciplines, the CMO Survey respondents said they expect an average 7.1% increase in spending on new product rollouts, a 4.9% increase in spending to introduce new services, a 6% increase in spending on customer relationship management, and a 4.6% increase in spending on brand-building.

Marketing execs also see positive trends for marketing research and intelligence, with a 6.6% increase in spending over the next twelve months, as well as a 1.6% increase in spending on marketing budgets.

The CMO Survey had good news from a broader perspective: More respondents were optimistic about the direction of the U.S. economy than in previous surveys, although they also expect to see increased competition from domestic and international rivals.

 

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1 comment about "CMOs See Traditional Media Ad Spend Falling".
  1. Michael Massey from Clickit Digital , September 16, 2013 at 2:22 p.m.
    Traditional media advertising continues to decrease for an number of reasons. First, legacy media still does not really have a firm grasp on how digital works and so they will continue to lose share. Second, pricing structures still fall within the broadcast model of packaging with lower quality inventory. Third, digital has robust reporting capabilities. I think this trend of losing budget will only continue.