For the first time ever, advertisers in the U.S. are expected to spend more on digital marketing and online advertising than in print. Research from Outsell Inc. indicates online advertising will make up 33 percent of total ad spending in 2010.
According to Outsell, overall spending on advertising and marketing in the U.S. will increase this year by 1.2 percent to $368 billion. Companies are expected to spend about $119.6 billion in online and digital ads compared to $11.5 billion on print ads in newspapers and magazines, an increase of 9.6 percent.
Print will make up about 30 percent of ad budgets, while online spending will soak up about 33 percent of total budgets.
“Advertisers are directing dollars toward the channels which generate the most qualified leads and most effective branding,” Chuck Richard, Vice President and Lead Analyst at Outsell, said in a news release. “As they emerge from the recession, they need more accountability, and they’re spreading their spending over a widening set of options.”
Among the report’s findings, Outsell says B2B advertisers find cross-media marketing to be most effective and 78 percent combine three or more methods.
Furthermore, more than half (51 percent) of B2B marketers rate Facebook as extremely or somewhat effective, followed by LinkedIn (45 percent), Twitter (35 percent) and MySpace (25 percent).
And despite the growth in online ad spending, print magazine advertising is still expected to grow 1.9 percent to $9.4 billion in the U.S. this year.
Outsell released its findings as part of its report titled “Marketing and Ad Spending Study 2010: Total US and B2B Advertising.” The report looks at spending, share, and growth for five media types, including online, events, print, TV/radio and PR/other.
Research data was compiled from surveying more than 1,000 U.S. advertisers in December 2009.