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11.5% earnings drop projected across the U.S.
Merrill Lynch analyst Lauren Rich Fine projected an 11.5% drop in per-share earnings across the U.S. newspaper industry in the third quarter, and forecast that six companies would report double-digit declines. She also lowered her newspaper ad revenue forecast from 1.2% growth to flat in 2006, and from 1.1% growth to a 1.5% decline in 2007. more>>>
market grew $73B in 1H06; Internet has 6.4% market share
Total U.S. advertising expenditures in the first six months of 2006 increased 4.1% to $73.0 billion as compared to the prior year period, according to TNS Media Intelligence. After a healthy 5.3% gain in the first quarter, the growth in total ad spending for the second quarter fell back more than expected and finished at 2.9%. more>>>
Worldata List Price Index examines the average price per thousand (PPM) of the lists we have grouped in each category. Triple bars are used in each category for easy comparison of October 2004 and 2005 prices to October 2006 prices.
Survey of Industry Leaders on Digital Media Trends, released today by
the American Advertising Federation (AAF), reveals that while there is
strong belief among industry leaders in the effectiveness of digital
marketing, there is lesser confidence in Fortune 500 companies' ability to
capitalize on online advertising. 63% that Fortune 500 companies are
"generally behind the curve when it comes to online ad
strategy." There is also a wariness of advertising executives
regarding their own ability to keep pace with the changing digital
environment. 58% said that they personally are "struggling simply to
manage existing online efforts, let alone stay ahead of the curve."
Advertising executives find blogs a riskier, less effective advertising vehicle than user-generated content sites such as MySpace, YouTube, Facebook, etc. 62% stated that "blogs are too risky to advertise with due to lack of predictability of the editorial content," while only 53% agreed with the same statement about user-generated content. Despite these concerns, an overwhelming majority said advertisers "should exploit the viral marketing opportunities" of user-generated sites and, to a lesser degree, blogs.
Marketing spending at U.S. companies will
be nearly $1.074 trillion in 2005, according to Blackfriars
Communications. In their first ever sizing of the U.S. marketing
market in 2005, they found that if marketing were a vertical industry,
it would represent about 9% of the gross domestic product of the United
States, and it would rank as the fifth largest industry, behind
manufacturing, government, real estate, and professional services.
A key finding in Blackfriars' analysis proved that industry affiliation has a big effect on marketing activities and spending. Retail trade companies spend 11.5% of revenue on marketing, the largest percentage of the six vertical industries studied. In contrast, financial services firms spend only 6.8% of revenue on marketing, the smallest percentage of the industries analyzed.