More ad spend in direct marketing for 2012

Share this article:

Things are looking up for the advertising industry, especially for the direct marketing sector. Private equity firm Veronis Suhler Stevenson (VSS) expects spending on US communications to reach $1.19 trillion, or an increase of 5.6%, in 2012—outpacing GDP growth of 4.4%, according to its latest forecast mid-term update.

The increases, VSS said, are due to improvements in the economy and stronger-than-expected results across all digital media.

VSS also increased its spending forecast for targeted media to 8.1% for 2012. The firm originally predicted spending to be 7.7%.

Targeted media includes direct marketing, as well as branded entertainment, outsourced custom content, pure-play consumer internet and mobile services and business to business (B-to-B) media.

“The upward revision was driven by strong performances in all segments except branded entertainment and outsourced custom publishing,” the report stated.

VSS also increased the compound annual growth rate (CAGR) from 7.9% to 8.4% between 2010 and 2015. This encompasses $278.4 billion to reflect expectations of stronger growth for most digital components, including e-custom publications, e-media in B-to-B media and pure-play consumer internet and mobile services segment.

It is surprising VSS downgraded the growth rate of the entertainment and leisure media sector—the only sector that VSS downgraded—to 5.7% from 5.8% expected growth for 2012. Although, perhaps it is not as surprising as the sector includes consumer book publishing, as well as subscription television and entertainment media, including TV programming, home video, videogames, recorded music and box office.

While there will be gains in box office and both online and mobile videogames, VSS said it will not be enough to help offset the prolonged weak results in the printed book market.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Direct Line Blog

Sign up to our newsletters

Latest Jobs:


Company of the week

Data Services, Inc. meets the needs of today's data-driven marketer by providing front-end database management and data analytics platforms alongside our expertise in global contact data quality, database building and ongoing maintenance that comes with our 45+ years in business.


Find out more here »

More in Direct Line Blog

Sports Box Out the Arts in Brand Sponsorship

Sports Box Out the Arts in Brand Sponsorship

69% of the $19 billion spent on marketing sponsorships in the U.S. last year went to sports. Only 5% went to the arts.

Stepping Stones to Marketing Success

Stepping Stones to Marketing Success

DMN's 2014 40 Under 40 Award winners discuss how their very first job make an impact on their marketing career.

Big Data Enables Bigger (and Hopefully Better) Campaigns

Big Data Enables Bigger (and Hopefully Better) Campaigns

Almost any dataset can improve the effectiveness of a marketing campaign—if used creatively and nimbly.