Direct response advertising led the top 10 advertising categories in terms of percentage gain between 2006 and 2007, according to a new study.
DR generated nearly $7.45 billion in expenditures during 2007, a 17% over the $6.36 billion the category racked up in 2006. The only other category to post double-digit gains was personal care products, ad spending for which jumped 10.1%, to $5.61 billion.
The jump moved direct response into the sixth-highest position measured, edging out domestic automotive expenditures, which fell 7.1% to $7.05 billion.
The five categories that are larger than direct response include: financial services ($9.12 billion); telecom ($9.05 billion); local services and amusements ($8.12 billion); and miscellaneous retail ($8.07 billion).
Internet display advertising, while not a top ten category, recorded 15.9% growth, ending the year at $11.31 billion in expenditures.
In total, the advertising market (which includes television, radio, periodicals, and all other channels) generated $148.99 billion, a 0.2% uptick over 2006’s level, according to TNS media intelligence, which released the study.
“As a whole, the ad market remains stalled and is being engulfed by the spreading pessimism about general economic conditions,” said Jon Swallen, SVP Research at TNS media intelligence, in a statement.
Swallen continued, “Fourth quarter performance was indicative of this malaise and early figures from 2008 suggest the growth rate for measured ad spending has not appreciably changed. A cyclical boost from the elections and Olympics still waits on the horizon. However, marketers are being cautious with their core ad budgets faced with concerns about consumer spending and corporate profits.”
