Internet Advertising Analysis Part 22; Advertising vs. Direct Marketing
In the offline world, advertising and direct marketing overlap, but can be differentiated from retail sales. A television commercial that shows a fancy SUV driving through pristine wilderness is termed advertising the consumer is expected to associate the advertiser’s brand with the SUV and the beautiful scenery viewed on television. A television commercial for a magazine subscription that is 50% off the cover price and offers a free video and an 800 phone number as a call to action is termed direct marketing. The consumer is driven to respond by the video and phone number. The following diagram demonstrates the overlap and size of direct marketing with advertising in the U.S..
Figure 37 Direct Marketing Overlap with Advertising (2000E)
We expect the direct marketing budget in the U.S. to be $187 billion in 2000. Direct marketing will likely represent 40% of all TV advertising, 56% for magazines, 37% for newspapers, and 40% for radio. Direct mail and telemarketing have been considered nonmedia direct marketing outside of the traditional media. In 2000 we expect this to represent spending of $117 billion in the U.S.
Table 86 U.S. Advertising & Marketing Services Forecast Media Breakdown
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Part 23; Investment Conclusion
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