Merrill Lynch: Advertising trend favors Internet, direct marketing

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New York—National advertisers are putting increased emphasis on nontraditional advertising and marketing in a trend that is likely to continue, according to Merrill Lynch’s "Advertising & Marketing Services" industry update released Thursday.

"As advertising shifts from an investment to an expense within organizations, the need to measure returns and/or lower costs has heightened," the report states.

Beneficiaries of that shift will be Internet advertising, direct marketing, sales promotion and branded entertainment, according to Merrill.

The company is forecasting 4.6% overall U.S. ad growth this year, excluding direct mail.

Direct mail spending is projected to rise 5.5% this year.

—Carol Krol

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