Where's the Money Moving? Out of Media

Ad Dollars Drop, but That Doesn't Mean Marketers Have Stopped Spending.

CHICAGO (AdAge.com) -- U.S. ad spending -- at least the measured kind -- fell 0.3% in the January-to-March period, the first down quarter since the ad recovery began in 2002. But a drop in reported ad spending does not mean a drop in marketing spending. That's because what marketers need isn't just measured media; it's measurable results.

Budgets are gravitating from old-line measured media to an array of marketing-services -- digital, direct, customer relationship management -- that offers better tools to quantify results.

Marketing services includes some media offerings, such as online ads. But much of marketing services doesn't fit in the box of an ad to be sold. For companies in the business of selling media space and time, a shift to non-media forms of marketing poses a fundamental challenge.

Marketing services win out
Marketing-services disciplines often fly under the radar, unmeasured by ad trackers such as TNS Media Intelligence, which put out the first-quarter data. But the shift is clear: In 2005, U.S. agencies generated more revenue from marketing services than from traditional advertising and media, according to Ad Age's DataCenter. The trend has continued. In the first quarter, the top three agency holding companies -- Omnicom Group, WPP Group and Interpublic Group of Cos. -- collectively generated 53% of worldwide revenue from marketing services.


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