You don't need to be a fan of the popular TV show "Mad Men" to know that the advertising business means big bucks. However, the industry is very different these days than is portrayed in the show, which is set in the 1960s. There are more dollars being spent and there is a wider array of options for advertisers to fork over their cash in the hopes of luring customers. Kantar Media reports that total advertising expenditures in the first six months of 2011 increased 3.2% from a year ago, and shows little sign of stopping. Where the dollars are being spent, though, is what's shifting. (For more, read Advertising, Crocodiles And Moats.)



TUTORIAL: Stock-Picking Strategies



Here are some examples of where advertisers are spending their money these days:

Television
Television is still king when it comes to advertising dollars. Barclays Capital estimates, TV ad spending could reach $60 billion this year. But there has been a marked spending shift from network TV. Kantar Media reported network TV advertising fell 7.6% during the first half of the year, to cable networks, which saw an 11.8% rise. Sports played a giant role in the change, including the move of college football bowl games and the NCAA Men's Basketball Tournament programming from broadcast networks to cable. The drama surrounding the two professional league lockouts -- the National Football League and National Basketball Association -- kept advertisers on the edge of their seats, but ultimately grabbed big ad dollars when all was eventually resolved.


Online
Despite its surge in nearly every other venue, online ad spending is still behind TV dollars. It is, however, expected to reach $30 billion in the U.S. this year -- up about 15% from its estimates for 2010.
Internet media accounted for more than one-half of the dollar gain in total ad spending during the first six months of the year. Display spending jumped 12.9% and search investments rose 8.6%, according to Kantar Media, which cited the travel, local service and insurance categories as prominent factors so far for the year.

Mobile Outlets
If you have a product or service to sell, it's likely there's an app for it that's available for your mobile device. According to ABI Research, they estimate that 29 billion apps will be downloaded in 2011. Gartner reports that by the end of 2011, mobile advertising will generate $701 million in revenue in North America
. This is more than double that of $304 million in 2010. As revenue from mobile advertising continues, it is only a matter of time before more advertisers jump on this growing trend and try to take a piece of the large mobile advertising pie. (For related reading, check out Retailers Are Going Mobile: How You Can Benefit.)

Radio
The pace of spending over the airwaves has steadily declined over the last few years, but advertising on local radio was up 2.4% compared to a year ago, perhaps due to more stations moving to digital platforms. Sales stayed soft through the first half of 2011 but Nielsen reports show that advertisers are continuing to invest internationally, with a focus on the growing Asian and Latin American markets.


Print
The decline of the newspaper and magazine media outlets continues to drag down the ad market. National newspaper ad spending fell 4.9% and Spanish language newspapers dropped 5.9% through the second quarter of 2011, according to Kantar media. Research firm eMarketer reported that advertising spent in newspapers (print and online) fell to $25.7 billion in 2010, a drop of 6.6%. However, the local newspaper segment ended its streak of 22 consecutive quarters of spending declines and eked out a 2.5% increase, and a 0.6% gain for the half year.


The Bottom Line
As long as there is a consumer audience, companies will spend money hawking their goods and services. But marketers must keep up with the times, and follow the trends to ensure their efforts get the biggest bang for their buck. (For more on Ads, read 8 Of The Most Successful Ad Campaigns Of All Time.)

Related Articles
  1. Investing Basics

    Netflix's Billion-Dollar Content Licensing Budget

    Understand how Netflix selects the TV shows and movies it streams to its subscribers, and learn how it finances those licensing deals.
  2. Credit & Loans

    What SoFi's Super Bowl Ad Means for Your Next Loan

    Non-bank lender SoFi will air its first TV ad during Super Bowl 50. Here's how it's challenging big banks by providing an alternative approach to loans.
  3. Stock Analysis

    Tribune Media: An Activist Investment Analysis (TRCO)

    Learn more about the breakup of Tribune Company, once a powerful newspaper and broadcasting giant, and the role of activist investor Cliff Robbins.
  4. Investing

    5 Up and Coming Social Media Startups

    Although the days of Facebook's dominance aren't close to being over, here are some new creative platforms gaining traction on the worldwide web.
  5. Fundamental Analysis

    The World's Top 10 Entertainment Companies (CMCSA, CBS)

    Take a look at the world's top 10 entertainment companies, spanning the movie, television, cable television, gaming and streaming video sectors.
  6. Stock Analysis

    The Biggest Risks of Investing in Dish Network Stock (DISH)

    Get insight about the potential risks of investing in Dish Network stock, such as its lack of cross-selling ability as an independent pay-TV provider.
  7. Investing News

    Alphabet Earnings Beat Expectations (GOOGL, AAPL)

    Alphabet's earnings crush analysts' expectations; now bigger than Apple?
  8. Investing News

    Are Super Bowl Ads Worth Their High Cost?

    Are Super Bowl ads worth the investment? A look at the cost and how they're received.
  9. Investing

    Barbie's Body Wasn't the Problem (opinion)

    Barbie's body type wasn't what killed sales, argues Angela Travillian. Other factors were at play.
  10. Stock Analysis

    Comcast Stock: A Dividend Analysis (CMCSA)

    Discover a detailed analysis of Comcast's dividend policy, and learn about its dividend coverage and payout ratios, which indicate future dividend growth.
RELATED FAQS
  1. How much of the profitability in the Internet sector is concentrated in the few major ...

    Outside of any limiting, narrow interpretations concerning what constitutes the Internet sector, there is very little industry ... Read Full Answer >>
  2. Why do ETFs have fees?

    An exchange-traded fund (ETF), like any other company, has operating costs that it incurs as a result of conducting business. ... Read Full Answer >>
  3. Do nonprofit organizations have working capital?

    Nonprofit organizations continuously face debate over how much money they bring in that is kept in reserve. These financial ... Read Full Answer >>
  4. Is a financial advisor allowed to pay a referral fee?

    A financial advisor is allowed to pay a referral fee to a third party for soliciting clients. However, the Securities and ... Read Full Answer >>
  5. What are some examples of general and administrative expenses?

    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>
  6. How does a long tail become profitable?

    A long tail becomes profitable because the costs to produce, market and distribute a product or service in a niche are low, ... Read Full Answer >>
Hot Definitions
  1. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  2. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  3. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  4. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center