Businesses plan to spend $2,000 per every living person in U.S. on marketing
U.S. businesses will be spending nearly $615
billion on marketing this year, according
to consulting firm Blackfriars Communications. This forecast is down $385
billion from 2005. In Blackfriars' second annual sizing of the U.S.
marketing market, it found that 2006 marketing spending dropped to 4.7% of
revenue this year from 8.9% last year. The manufacturing industry again
spent the most on marketing in 2006 with spending of $59 billion.
$615 billion a year - that’s more than two thousand bucks per every living man, woman and child in the U.S. going toward online and offline advertising, direct mail, telemarketing, spam, promotional events, Web sites, brochures and collateral, giveaways, marketing PR and everything else...writes Steven Silvers in his blog. He further adds that Every 1% of the “marketing industry” that is ineffective represents more than $6 billion poured down the drain. Brian's Business Blog writes..."marketing is a risk business. Sometimes you have to make mistakes to build a stronger campaign".
Blackfriars also announced that it has set the Blackfriars Marketing Index at 136 for the third quarter of 2006. The Q3 index indicates that US companies expect to spend 36% more on marketing this quarter than they spent in an average quarter in 2005. Blackfriars also set its second quarter 2006 index of actual spending at 78, 68 points below the budgeted value in June.
Blackfriars says, if marketing were an industry, the $615 billion spent on marketing this year would still make it the ninth largest industry in the United States. It remains larger than the entire U.S. information and media industry.
Methodology: To perform this research, Blackfriars collected data from 317 senior business executives about their marketing budgets, attitudes, and spending. Blackfriars then correlated this data with overall business spending from the 2002 U.S. Census and with gross domestic product data from the U.S. Bureau of Economic Analysis. Blackfriars analyzed the responses of 137 senior business executives to questions about their marketing budgets, attitudes, and spending to set this quarter's marketing index. Blackfriars surveyed the executives from April 7 through June 1, 2006. The executives surveyed represent a cross-section of U.S. businesses as tallied by the 2001 U.S. Census.
