Sourced from USA Today
This year, marketers will spend a record $175 billion on ads in major media, such as TV, radio, print, outdoor, movie theaters and the Internet, says ad-buying firm ZenithOptimedia. That’s up 5% over 2005. Add direct mail and other direct-response ads, and the total will hit $269 billion.
The increase comes from advertisers trying to out-yell each other, says J. Walker Smith, president of the consulting firm Yankelovich. If a marketer feels drowned out, “They just turn up the volume.”
Here’s how loud it’s getting:
• The average 1970s city dweller was exposed to 500 to 2,000 ad messages a day, Smith says. Now, it’s 3,000 to 5,000.
• In 2005, MTV (VIA) viewers had to put up with 21% more prime-time commercials per hour than in 2004, says TNS Media Intelligence and media firm MindShare.
• Marketers shelled out 71% more — $941 million — to integrate brands into TV shows in 2005 vs. 2004, PQ Media says.
• There are now ad-supported TV screens at airports, gas stations, health clubs and on buses and subways. Wal-Mart has its own network. ABC (DIS) signed with the In-Store Broadcasting Network to promote TV shows in Kroger supermarkets.
• Spending for on-screen movie theater ads swelled 21% to $453 million in 2005 vs. 2004. Off-screen ads, such as lobby promotions, rose 18% to $75 million, according to the Cinema Advertising Council.
• Marketers raised “out-of-home” spending, from billboards to elevator ads, by 9% last year to $6.3 billion, the Outdoor Advertising Association of America says.
There’s more to come. Marketers see small-screen devices — iPods, cellphones, laptops and video games — as the growth frontier:
• Spending for ads on Web-enabled mobile phones is expected to be $150 million this year, up threefold vs. 2005, according to consulting firm Ovum. By 2009, that will swell 766% to $1.3 billion.
• In 2005, $21 million was spent to place products in video games, a 38% rise over 2004, PQ Media says.
• Last year, companies shelled out $13 billion on Internet classified, search and display ads, JupiterResearch says. That’s expected to double to $26 billion by 2011.
“The human brain doesn’t process things any better than it did 30 years ago. But there are more people competing for that processing time,” Yankelovich’s Smith says. “It’s no surprise that consumers are pushing back.”
They’ve put more than 130 million phone numbers on the federal government’s telemarketer-thwarting national Do Not Call Registry as of Sept. 5.
Use of pop-up ad blockers on computers nearly tripled from June 2003 to January 2006, to 71%, according to Arbitron/Edison Media Research provided by eMarketer. Users with spam blockers more than doubled to 73%.
Web gives consumers voice
The Internet has emerged as a soapbox for irate consumers.
After Columbia Pictures (SNE) said it would cover Major League Baseball bases with Spider-Man 2 logos in 2004, tens of thousands voted against it in ESPN.com and AOL.com polls. Within 48 hours, the studio called it off, citing the polls.
Marketing under pressure
Companies are under more pressure than ever to deliver rosy quarterly results, and top marketing executives have less time than ever to prove their mettle. The average tenure of a chief marketing officer at a major U.S. company has declined to 23.2 months, according to search firm Spencer Stuart.
It’s no wonder they’ll sign off on increasingly bizarre ideas.
For instance, a recent promotion for the Paramount Pictures film Jackass: Number Two appears on urinal mats when the mat is hit with a stream of “number one.”
In May, Robert Reames III, 27, a father of three girls who was looking for money to replace the family car, sold rights to a permanent tattoo on his neck to Web-hosting company Globat.
The company also bought a temporary tattoo ad on the pregnant belly of Asia Francis, 21, of St. Louis. Globat would not disclose what it has paid for “body art.”
No space is too odd. US Airways (LCC) is in talks to sell ads on airsickness bags, spokeswoman Valerie Wunder says. It already makes about $10 million a year from ads on tray tables and napkins, she says.