Annual Advertising and Marketing Study 2009: Spending Patterns, Effectiveness, and Key Drivers

Authors: Chuck Richard, Vice President & Lead Analyst; Sheila King, Director of Primary Research

Outsell’s annual Advertising and Marketing Study 2009 is the fourth in our ongoing research and analysis program and answers key questions about what publishers need to know about their advertisers’ marketing and advertising spending. The data, collected in February 2009, quantifies how advertisers have planned their spending during the ongoing economic crisis. This report continues Outsell’s coverage of marketing and advertising budget allocations and growth rates for 2009 across all types of media, providing a unique and comprehensive 360-degree view, and gives publishers a real and current snapshot of marketing and advertising spending. By measuring both, Outsell tracks and reveals all the methods companies use to build and strengthen their brands and generate leads and new business. This report is one of three annual Outsell studies looking at all key money flows that fund the information industry – advertising, libraries, and end-users and their departments. It includes:

- Data on advertising and marketing spending and growth;
- Analysis of spending on advertisers’ own websites and how that saps publisher revenue;
- Data on advertising and marketing spending patterns, including spending as a percentage of revenue and a look at where money redirected from print advertising goes;
- Analysis of how advertisers rate the effectiveness of the many specific digital and traditional marketing methods that they now spend on;
- Marketing and advertising adoption of new media, metrics, key change drivers, and inhibitors;
- Outsell’s analysis of where marketing and advertising are headed;
- Essential actions for publishers and information providers.

Open table of contents

Why This Topic?
Advertising and Marketing Spending and Growth

Total US Advertising and Marketing Spending by Media and Method
Massive Scale of Spending on Companies’ Own Sites Saps Publisher Revenue
Traditional Media Down Double Digits in 2009

Advertising and Marketing Spending Patterns

Benchmark: Marketing Spending as Percentage of Revenue
Where Money Redirected from Print Advertising Goes
Share of Event Spending with Publishers versus Associations
Display, Sponsored Sections, PPC, and CPA Ad Spending Shares
Prices Paid for B2B Display, Contextual, Behavioral, and Search Keyword Ads
Percentage Using Ad Networks, Exchanges, and Agencies

Marketing Effectiveness

Cross Media and Multiple Marketing Method Effectiveness
Search PPC, Display, and Behavioral Effectiveness
Lead Generation Effectiveness of 24 Marketing Methods
Branding Effectiveness of 24 Marketing Methods
How Marketing Method Effectiveness Varies by Company Size
Click Fraud Percentage and Actions That Advertisers Take to Respond

Marketing and Advertising Adoption of New Media, Metrics, Key Change Drivers, and Inhibitors

New Marketing Methods Use and Plans to Use . . .33 Net Change in Use of Ad Tracking and Ad Management
Ranking Value of Advertising Analytics . . .37 Most Important Factors in Allocating Marketing Spending . . .38 Biggest Drawbacks and Problems in Buying Advertising

The Future of Marketing and Advertising
Essential Actions
Related Research
Methodology

Tables & Figures

Table 1. Total US Advertising and Marketing Spending, 2008-2009
Figure 1. US Marketing and Advertising Spending, 2006-2009
Figure 2. B2B Marketing Spending on Own Website by Vertical Industry, 2009
Figure 3. Marketing Spending on Own Website – Companies with 1 to 10 Employees, 2009
Figure 4. Marketing Spending as Percentage of Revenue, 2009
Figure 5. B2B Trade Magazine Print Spending Redirected to Other Recipients, 2009
Figure 6. US Event Spending with Publishers versus Associations, 2009
Figure 7. Display, Sponsored Content, PPC, and CPA Online B2B Ad Spending, 2008-2009
Figure 8. Prices Paid for Display, Contextual, Behavioral, and Search Keyword Ads – B2B Small, 2007-2009
Figure 9. Prices Paid for Display, Contextual, Behavioral, and Search Keyword Ads – B2B Large, 2007-2009
Figure 10. B2B Advertiser Spending on Ad Networks, Exchanges, and Agencies, 2008-2009
Figure 11. B2B Spending on Ad Networks, Exchanges, and Agencies by Industry, 2009
Figure 12. Cross Media and Multiple Marketing Method Effectiveness for B2B Advertisers, 2009
Figure 13. Search PPC, Display Ads, and Behavioral Targeting Effectiveness – Small Companies, 2009
Figure 14. Search PPC, Display Ads, and Behavioral Targeting Effectiveness – Large Companies, 2009
Figure 15. Lead Generation Effectiveness – Small Companies, 2009
Figure 16. Lead Generation Effectiveness – Large Companies, 2009
Figure 17. Branding Effectiveness – Small Companies, 2009
Figure 18. Branding Effectiveness – Large Companies, 2009
Figure 19. Most Effective Lead Generation Methods by Company Size, 2009
Figure 20. Most Effective Branding Methods by Company Size, 2009
Figure 21. Click Fraud: Actions Taken and Percent Fraudulent Clicks, 2008
Figure 22. New Media Use and Plans to Use – Small Companies, 2008-2009
Figure 23. New Media Use and Plans to Use – Large Companies, 2008-2009
Figure 24. Net Change (2009 vs. 2008) in Usage of Ad Management and Ad Tracking Methods
Figure 25. If You Could Only Track Three Metrics, 2009
Figure 26. Most Important Factors in Allocating Spending – Small Companies, 2008-2009
Figure 27. Most Important Factors in Allocating Spending – Large Companies, 2008-2009
Figure 28. Industry Specific Ratings of Most Important Factors in Allocating Spending
Figure 29. Biggest Drawbacks and Problems in Buying Advertising, 2009