Advertising and Print

By Andrew Paparozzi
In March 6, 2008

There is no more important industry to print than advertising. According to data from Robert J. Coen of Universal McCann, advertising expenditures are expected to rise 0.7% in 2007 to $283.9 billion. Nonetheless, as companies strive to get more bang for the buck, advertising as a share of the economy (GDP) is continuing to trend lower. In December 2007, Mr. Coen forecast that advertising would rise 3.7% this year. However,it is important to note that the economic outlook as since worsened.

While total advertising is of interest, it is the breakdown by medium that provides more telling information. Mr. Coen’s data show that print-media advertising is expected to increase to $120 billion in 2008, representing a gain of 4.2% over the previous year and 13.2% above the spending level in 2000. Gains by direct mail and magazines are more than offsetting declines in newspaper advertising. Although print’s share of advertising is moving lower, it is not disappearing. Print still can be very effective and accounted for over 41% of advertising in 2007. But, as we know, there are options. Are printers prepared to inform their clients of the availability and effectiveness of these different options in order to craft the best communication mix for their specific goals?

Electronic-media advertising will continue to gain share, rising an expected 5.9% to over $101 billion in 2008. Its share of the total advertising is expected to exceed 34%. Internet advertising is getting much of the attention and deservedly so. It is expected to gain 16.5% this year, after rising 20% in 2007. It is up 8 fold since 1998 and will represent almost 13% of electronic-media advertising this year.

Joseph Vincenzino

Andrew Paparozzi

Epicomm's Andrew Paparozzi, Vice President/Chief Economist, is well-known for his accurate and thoughtful discussions on the economy and US commercial printing industry. A foremost author and speaker on economic business trends in the printing industry, Paparozzi heads Epicomm's Printing Economic Research Center.

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