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US Top Advertisers Spend Less, Spend Smarter

Trend Summary: Total adspend by the USA's 200 top national advertisers rose by just 2.0% in 2014 - not because of slashed budgets but savvier spending.

The annual Leading National Advertisers [LNA] report from US trade bible Advertising Age offers new evidence as to how blue-chip marketers get more bang for their billions of bucks by doubling down on digital efforts and slashing unnecessary costs from their marketing activities. While total US ad spending by the top 200 advertisers reached ...

... a record $137.8 billion in 2014, the growth rate was the lowest since the ad-market recovery took hold in 2010.

The top 200 advertisers are under-represented in other (non-TV) measured media, accounting for less than 50% of expenditure.

As an exemplar, the two hundred LNA between them account for 41.9% of measured spending in magazines, 40.6% of internet display spending and 25.3% of newspaper spending.

TV (broadcast network, cable TV network, spot and syndicated) gobbled a massive 68.5% of the pie, with internet display representing just 7.2% and print media, radio and outdoor collectively took the remaining quarter: 24.3%.

As an expample of this trend to parsimony, Estée Lauder's exec VP-chief financial officer Tracey Travis told an investor conference last month: "This year our marketing investment will be flat spending as many of our fastest-growing brands do not require as much traditional advertising, and digital is becoming a larger share of our media mix."

Read the original unabridged article.

[Estimated timeframe:Q3 2015 onward]

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