A Look Back on Ad Spending In ’05 And Ahead To ’06
A recent issue of the Universal McCann Insider’s Report noted Robert J. Coen’s 2006 advertising predictions as presented at the December UBS Global Media Conference. He pointed out that advertising growth last year failed to outpace 2005’s GDP growth of 6.3%. Though economic conditions did improve in ’05, national marketers stayed cautious, the article reports. The projection for total national advertising in ’05 is now in excess of $177.14 billion, a 6% gain over the previous year. Fourth quarter revenue data for broadcast television networks should result in a full-year gain of about 1% at best. Based on 2005 projections, advertising spending changes have been modest with the exception of mail advertising. The first half of 2005 shows a 5% increase in number of pieces of mail sent at the regular standard mail rate. The trend is attributed to telemarketing restrictions and a desire for immediate measurable short-term responses. Coen anticipates a continuation and expansion of these programs in ’06. In this new year, national advertising is expected to increase at a somewhat faster pace than it did last year and its growth should outpace general economic growth. The combination of national and local marketers spending for advertising next year is projected for a total of $292.0 billion, indicating a 5.8% gain over ’05. (source: Center for Media Research: www.research@mediapost.com)
Online Spending During the Holidays Up 25% From 2004
Excluding travel spending, online consumer spending from Nov. 1 through Dec. 25 totaled $18.11 billion dollars according to comScore Networks. This is a 25% increase from the corresponding period in 2004 that saw $14.50 billion in spending. The top three product categories for online holiday spending were computer hardware including peripherals and PDAs at $4.1 billion and a 14% rise from ’04, apparel and accessories at $3.0 billion and a change of 37%, and consumer electronics excluding PC peripherals at $1.3 billion, which represents a 20% change over ’04. Online sales of gift certificates saw a 19% increase over ’04. The top 10 retail sites measured by total visits are eBay, Amazon sites, Wal-Mart, Apple Computers, Target Corporation, Dell, Toys”R”Us sites, Overstock.com, Best Buy sites and Circuit City stores, Inc. (source: comScore Networks: www.comscore.com)
Family Responsibilities Linger As Baby Boomers Approach 60
According to a recent Pew Research Center survey, as the oldest of the baby boomers approach the age of 60, 50% were raising one or more small children and/or providing primary financial support to one or more adult children. Of the nation’s 75 million baby boomers, who range in age from 41 – 60 (as of January), 17% whose only children are 18 or older were providing some financial assistance to at least one child. On the other end of the family spectrum, two out of 10 boomers were providing some financial assistance to a parent. Thirteen percent financially assisted a parent while also raising a minor child or supporting an adult child. Additional findings include: 71% have at least one living parent, 63% have at least one child that is 18 or older, and 56% reported that it is a responsibility to allow an elderly parent to live in one’s home if the parent wants to move in. (source: Center for Media Research: www.research@mediapost.com)
