Ad Spending Up But Down

by Mark Fogelberg

According to whichever recent report and whatever recent article you might have read, the sky is falling. Or not. Maybe it's a good thing. Or not.

The summary version reads, "Advertising GROWTH to taper off." Growth in spending has slowed? Rather than think doom and gloom, perhaps a pat on the back is in order? Perhaps advertisers have become more efficient, spending valuable dollars more judiciously.

Averaging 3 big name forecasts gives a percentage growth in excess of 3.1% for US paid media during 2007. That growth percentage (and the underlying billions) seems hardly insubstantial or unhealthy. Especially when factoring in new media venues - with their smaller audiences and lower cost basis - the ad business continues to do well as a whole.

There are some pockets of hurt as adjustments are made and new media forms explored but the Darwinian nature of media should allow for better opportunities for advertisers. Traditional media venues continue to deliver the audiences advertisers need - with content which draws the crowds. The fact that there has been an explosion of new choices to help marketing efforts warrants 3 cheers as mass efforts can be complemented. We can do more and reach more with integrated messages - and we can do it all more efficiently.

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