Spending on Internet display ads by retailers, catalogers and other marketers this year will decline by 1.2% to $7.2 billion from $7.3 billion last year, but advertising expenditures for all forms of non-e-mail Internet advertising will grow 1.1% to $23.1 billion, the Direct Marketing Association says in a new report.
The report, The Power of Direct Marketing, found that advertising expenditures for search engine advertising grew by 3.5% to $11.2 billion from $10.8 billion. Direct marketers also are expected to spend about $1.2 billion on social media related advertising expenditures this year, about the same total as in 2008.
Due to decreases in corporate profits, consumers economizing, belt-tightening by businesses, and limited credit options, overall direct marketing advertising expenditures are predicted to fall to $149.3 billion in 2009, a decline of 11.2% compared to 2008, the DMA says. But direct marketing is still performing better than general advertising which fell to $125.7 billion in 2009, down 14.2% from 2008, according to the DMA.
“While offline channels will continue to account for the bulk of advertising dollars in 2009, the most significant developments for the 2009 and 2010 period are the continued shift of dollars towards online media,” says DMA research manager Yoram Wurmser. “Non-e-mail Internet advertising will claim over 15% of all direct marketing advertising dollars in 2009, and nearly 17% in 2010.”
In 2009 direct marketers cut back their advertising expenditures for newspapers, TV and direct mail by 25.3%, 12.6% and 15.6%, respectively, the DMA report says. “As digital media continue to take up a bigger role the direct marketing world, we are seeing a permanent shift in spending from offline to online, with a significant increase in e-mail and mobile,” says Wurmser.
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