Media Outlook 2019: Spell Marketing with a ‘D’

The January marketing calendar in New York has included for the past decade or so a certain can’t-miss event of the Direct Marketing Club of New York. In 60 fly-by minutes, 100-plus advertising and marketing professionals hear a review of the previous year in marketing spend, a media outlook for the current year and macro-economic trends driving both.

The January marketing calendar in New York has included for the past decade or so a certain can’t-miss event of the Direct Marketing Club of New York. In 60 fly-by minutes, 100-plus advertising and marketing professionals hear a review of the previous year in marketing spend, a media outlook for the current year and macro-economic trends driving both.

Bruce Biegel, senior managing director at Winterberry Group, keeps everyone engaged, taking notes and thinking about their own experiences in the mix of statistics regarding digital, mobile, direct mail, TV and programmatic advertising.

“We will be OK if we can manage the Shutdown, Trump, China, Mueller, Congress and Brexit,” he noted, all of which weigh on business confidence.

Suffice it to say, marketing organizations and business, in general must navigate an interesting journey. Biegel reports estimated U.S. Gross Domestic Product (GDP) growth of 2.3 percent in 2019 down from 3 percent in 2018, while total marketing spending growth in 2018 had dipped below its historic level of exceeding two times GDP growth.

In 2019, we are poised for 5.3 percent growth in advertising and marketing spending a slight gain from the 5.2 percent growth of 2018 over 2017.

Watch the Super Bowl, By All Means But Offline Dominance Is Diminishing

Look under the hood, and you see what the big drivers are. Offline spending including sponsorships, linear TV, print, radio, outdoor and direct mail will spot anemic growth, combined, of 0.1 percent in 2019. (Of these, direct mail and sponsorships will each post growth of more than 3 percent, Winterberry Group predicts.)

But online spending growth display, digital video, social, email, digital radio, digital out-of-home, and search will grow by 15.5 percent. Has offline media across all categories finally reached its zenith? Perhaps. (See Figure 1.)

Figure 1.

Credit: Winterberry Group, 2019

Digital media spend achieved 50 percent of offline media spend for the first time in 2018. In 2019, it may reach 60 percent! So who should care?

We do! We are the livers and breathers of data, and data is in the driver’s seat. Biegel sees data spending growing by nearly 6 percent this year totaling $21.27 billion. Of this, $9.66 billion will be offline data spending, primarily direct mail. TV data spending (addressable, OTT) will reach $1.8 billion, digital data $7.85 billion, and email data spend $1.96 billion (see Figure 2.)

Figure 2.

Credit: Winterberry Group, 2019

Tortured CMOs: Unless She’s a Data Believer

Marketing today and tomorrow is not marketing yesterday. If marketing leadership does not recognize and understand data’s contribution to ad measurement, attribution and business objective ROI, then it’s time for a new generation to lead and succeed. Marketing today is spelled with a D: Data-Driven.

Unfortunately we don’t have all the data we need to manage Shutdown, Trump, China, Mueller, Congress and Brexit. That’s where sheer luck and gut instincts may still have a valid role. Sigh.