PPB June 2018

U.S. Media Silo Trends (listed in order of size) 2017 U.S. Advertising and Marketing Growth | FEATURE Television Advertising Television historically has fluctuating ad growth rates, rising in even years with the influx of political campaign spending and international sporting events such as the Olympics and World Cup. In odd years, growth decelerates or declines, as it did in 2017 when it fell one percent to $93.80 billion. Organic growth, when politics and sports are excluded, has been flat-to-declining over the past decade. Some brands still advertise on TV because it reaches the largest audience, such as during the Super Bowl. Other brands have shifted to alternative brand marketing platforms such as mobile advertising and experiential marketing, due to falling ratings. Additionally, cord cutting among younger demographics has been a concern as they switch to subscriber-based over-the-top (OTT) video services such as Netflix, which offer original scripted programming without ads. Direct Marketing This media silo has begun to exhibit growth trends similar to TV, rising in even years due to increased political campaign spending on direct mail and telemarketing, and declining in odd years, such as in 2017 when it dipped 0.3 percent to $83.35 billion. In the past, declines were often associated with postage rate hikes, which affected the direct mail and catalog sectors, but with budgets shifting to e-mail marketing, and with most catalogs now available online, the decline has not been as steep when the postal service raises rates. Among channels that exhibited growth last year were direct response TV, driven by a resurgence in infomercials, and list management, which aggregated more data on consumers than ever before and was bolstered after Congress overturned net privacy, as noted above. Pure-Play Internet And Mobile Advertising & Marketing Although pure-play internet and mobile media registered a 12.1 percent increase in 2017 to $60.12 billion, the two media platforms have growth projections moving in opposite directions. Mobile advertising and marketing grew at high double-digit rates in 2017 exceeding 20 percent, driven by smart tech marketing, mobile video advertising and mobile search marketing. Meanwhile, numerous internet categories registered declines in 2017, particularly online search, as most consumers are now using mobile devices for search. It should be noted that if pure-play internet and mobile media were combined with digital brand extensions of traditional media operators, total digital advertising and marketing grew approximately 13 percent in 2017 to slightly more than $100 billion. Branded Entertainment Marketing Experiential marketing took on more importance in 2017 as brands sought to engage one-on-one with consumers and clients at events and trade shows, fueling a 7.4 percent increase in branded entertainment to $57.48 billion. Meanwhile, product placement rose at double-digit rates for the sixth consecutive year, as brands worked more closely with producers to integrate products into plot lines of favorite television programs and films, such as Procter & Gamble products being highlighted in an episode of Blackish . Promotional Marketing (not including promotional products) The improving economy helped drive growth in select promotional marketing channels, leading to a 3.1 percent gain in 2017 to $55.16 billion. Business-to-business promotions rose at a faster rate than consumer promotions in 2017, with incentives marketing and trade-show promotions both growing at accelerated rates for the year. Meanwhile, most consumer promotions channels declined in 2017 due to the | JUNE 2018 | 65