Third Annual Outsell, Inc. Study Forecasts $412.4 Billion in 2008 Advertising and Marketing Spending

Unique Outsell Study Shows Shift in Spending to Companies’ Own Sites

BURLINGAME, Calif. & LONDON–Spending on total U.S. advertising and marketing will grow 3.9 percent in 2008 to reach $412.4 billion, with the advertising portion reaching $249.1 billion, according to the third annual ad spending report by Outsell, Inc. Reflecting the overall economic slowdown, the growth rate for advertising and marketing spending has declined from 5.8 percent in 2007.

Outsell is the only research firm to take a 360-degree look at total U.S. advertising and marketing spending targeting both businesses and consumers, and covering 31 advertising and marketing methods. The report covers five key media types: online, print, events, TV/radio and others. Outsell surveyed 1,088 U.S. advertisers on their spending plans for the year. Among the significant findings:

* Companies are spending 61.8 percent of their online ad/marketing budgets on their own sites, siphoning dollars away from other options. This accounts for $65.1 billion. As a result, publishers are beginning to offer their own advertising/marketing services to recapture lost revenue.
* The fastest growing of all ad types is online, which is expected to grow 12.3 percent in 2008 to $105.3 billion (or $40.2 billion excluding advertisers’ spending on their own sites). This represents a major turning point in online spending, which now exceeds TV/radio/movies for the first time ($98.5 billion).
* Advertisers’ spending on traditional media remains significant—with print capturing 35.5 percent of spending ($147.0 billion) and events at 12.5 percent of the total ($51.7 billion). Fifty-four percent of advertisers spread budgets across three or more media types.
* Out of 26 methods measured for effectiveness, advertisers rate their Websites as the best for lead generation (75 percent effective), followed by exhibitions (66 percent), custom print publications (65 percent), direct mail marketing (64 percent), and trade magazines (64 percent).
* When asked, “If you could only track three [new media] metrics, what would they be?” advertisers point most frequently to cost per sale (46 percent), cost per lead (37 percent), and cost per click (32 percent).

The Outsell report includes Essential Actions for publishers who want to remain competitive in the current advertising environment. Companies that would like to purchase the report should visit: http://www.outsellinc.com/store/products/741?refid=pr741. Journalists should contact Dawn Ringel, Warner Communications, 781-449-8456 or dawn@warnerpr.com.

ABOUT OUTSELL, INC.:

Outsell is the only research and advisory firm focused on the publishing, information, and education industries. Our international team provides independent, fact-based analysis and actionable advice about competitors, markets, operational benchmarks, and best practices, so our clients thrive and grow in today’s fast-changing digital and global environment. Outsell’s headquarters are in Burlingame, CA, US and London, UK. Visit us at www.outsellinc.com.

Contacts

Warner Communications
Dawn Ringel, 781-449-8456
dawn@warnerpr.com
http://www.outsellinc.com

• IKANO Assists Service Organizations of All Types to Reduce Email Management Costs - Over 120,000 Internet Customers Migrated Into Google Apps(TM) Partner Edition
• Transform With Microsoft's New SideWinder X6 Keyboard; Industry's First Switchable Key Pad Moves From Work to Play
• Phoenix Technologies Demos Laptop Security and Embedded Virtualization Solution, FailSafe and HyperSpace, at Intel Developer Forum
• New Digital Connectivity Technology From Silicon Image Recognized as 'Best New Product Idea' at CableLabs(R) Summer Conference 2008
• Hermes Spacecraft Looking to Bring Personal Space Travel to the Masses