Outsell reports shifts in ad spending, paid content

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Burlingame, Calif.—U.S. companies are shifting $60 billion out of traditional advertising venues such as TV and print and spending it on their own Web site development, according to a new report by research firm Outsell. The study, “Annual Advertising and Marketing Study 2009: Spending Patterns, Effectiveness, and Key Drivers,” was based on an analysis of U.S. companies' advertising and spending patterns in 2009. The report estimates that total US advertising and marketing spending will fall 6.9% to $363.5 billion this year compared with last year. Advertising spending will fall 8.5% and marketing spending will be down 4.5%, according to the report.

Additionally, as b-to-b publishers struggle with declining ad revenue, many are turning to paid content to generate new revenue. However, that may not be such a good idea, according to a pair of new reports from Outsell, which calls 2010 a "lose-lose-lose year for content buyers, sellers and users."

Outsell said information managers expect a 6% increase in the cost of content while they also anticipate a 3% net decrease in their content budgets. “Information managers say that with less money to spend, they'll choose the content providers who make it easiest to do business. Vendors will differentiate themselves through better service, more transparency, and flexibility with pricing and contracts,” Joanne Lustig, VP-lead analyst at Outsell, said in a statement. Outsell has published two reports on this trend—one for vendors and another for information managers.

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