Traditional Ad Spend Falling, Digital Rising18 Sep, 2013 By: Doug McPherson
DURHAM, N.C. – Spending on traditional advertising – non-Web or other digital channels – will drop 2.1 percent during the next year, says a survey from the Duke University Fuqua School of Business, conducted from July 16 to August 6.
The forecast, based on the survey of 410 marketing executives, also predicts a 4.3-percent overall increase in marketing budgets over the next year – much of that jump coming from a 10.1-percent leap in digital marketing spending, which is expected to grow across the board.
The execs expect digital advertising for business-to-business products to increase 9.5 percent, for business-to-business services 9.9 percent, for business-to-consumer products 11.1 percent, and for business-to-consumer services 10.6 percent.
Respondents see traditional media advertising decreasing 2.4 percent for business-to-business products and 3.9 percent for business-to-business services. A modest 0.8-percent increase is predicted for business-to-consumer products, but this is paired with a 1.9-percent decrease for business-to-consumer services.
Respondents said they expect an average 7.1-percent increase in spending on new product rollouts, a 4.9-percent increase in spending to introduce new services, a 6-percent increase in spending on customer relationship management, and a 4.6-percent increase in spending on brand building.
Marketing execs also see positive trends for marketing research and intelligence, with a 6.6-percent increase in spending over the next twelve months, as well as a 1.6-percent increase in spending on marketing budgets.
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.