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Marketing Communications Spend in Media Buoyed by Growth of Digital

MediaVillage Analysis Shows Digital Spend Continues to Replace Declines in Linear Investments

/EINPresswire.com/ -- NEW YORK, NY--(Marketwired - Oct 10, 2017) - A new analysis by MediaVillage, which has been tracking media and marketing expenditures since 1988, shows that 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. The increased spend in digital continues to offset the overall decline but we are also seeing a decline in digital from previous years," said Jack Myers, Media Ecologist and Founder of MediaVillage. "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."

Of the total spend in 2017, digital advertising/marketing expenditures increased 20% to $157 billion and continue to offset the decline in linear spend. This growth of digital offsets overall 2017 declines in legacy marketer expenditures of 6.2%, with only out-of-home/place-based media, cinema, broadcast syndication and branded content receiving increased investments from marketers for their legacy inventory. However, digital spend for 2017 is down from a 26% spending increase in 2016 vs. 2015 and MediaVillage is forecasting a continued slowdown in digital spending growth across all media and marketing sectors.

Total digital investments are projected to increase an average of 15.0% annually in 2019 and 2020. Myers forecasts that broadcast network linear expenditures will decline 2.2% in 2017 and grow 1.6% in 2018, while marketers' investments in broadcast network digital inventory will increase 18% annually, bringing total broadcast network industry ad revenues into the black -- to +0.3% this year and +4.0% next year.

MediaVillage is the only independent non-publicly traded media industry forecaster, with an unequaled record of accuracy. MediaVillage is the only economic analyst that covers and reports data on all 28 marketing communications categories, including ten "below-the-line" and 18 traditional "above-the-line" media advertising categories.

Myers economic reports also exclusively separate legacy/linear and digital spending within each category. MediaVillage's full 2000-2020 Marketing/Advertising Expenditure Report will be issued later this month and is available to MediaVillage member companies.

About MediaVillage:
MediaVillage is the industry's leading research and trade marketing communications platform dedicated to helping global media and advertising companies increase their brand equity through strategic perceptions management. Through unique marketplace intelligence, strategic counsel, and an exclusive content creation and distribution platform, MediaVillage shapes the perceptions that influence key decision makers in the media buying, planning and selling process.

MediaVillage was founded by Jack Myers, a media expert, author and leading business analyst with decades of experience in the media and advertising industries. MediaVillage's mission is to strategically improve the positive perceptions of its client's organization, products, services, and executives.

Media Contact:
For MediaVillage
Ben Billingsley
ben@broadsheetcomms.com
(917) 826 - 1103

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