Direct response channels such as mail and the Internet, along with cable TV, will show the highest gains in 2005 spending among national advertisers. Both the Internet and cable TV will grow 15%, to $7.9 billion and $18.9 billion, respectively. Direct mail will jump by 8.5%, to $56.6 billion.
Overall, national advertising expenditures will increase by 6%, to $177.1 billion, during 2005, according to the Universal McCann Insider’s Report. By the end of 2006, total national advertising will amount to $189.2 billion. Direct mail’s growth will continue to outstrip the overall average, as marketers spend nearly $60.9 billion on it. Internet spending will jump to $8.7 billion.
During the first half of 2005, direct marketers sent out more than 41.5 million pieces of mail, a 4.9% jump in the number of pieces from first-half 2004, and the highest level for the first half of any year since 2000.
For the full year, marketers will send out nearly 10 billion more pieces of mail advertising than they did in 2000. Universal McCann’s senior vice president and director of forecasting Robert Coen predicts that during 2006, most mail campaigns will continue or even be expanded despite rising postal rates and paper, printing and handling costs.
Dot.com consumer advertising is on the upswing as well, and will account for more than $3.7 billion in ad expenditures in 2005, up 35% from 2004’s level.
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