Consumer Promotions Expenditures Doubled Consumer Advertising In 2003.

The Promotion Marketing Association (PMA) released the results of the 2004 Annual Industry Trends Report, which found that the migration of marketing dollars away from advertising truly gained steam in 2003. Survey respondents said they spent almost twice as much of their total 2003 budget on consumer promotion (46%) than they did on consumer advertising (24.2%). The survey also found that promotion spending reached over $288.3 billion in 2003, up 9.7% from the previous year.

The survey also analyzed 12 promotion segments in 2002 and 2003 and found that spending for all increased, except for one – games, contests and sweepstakes – which was flat over 2002. Event marketing, interactive marketing and sampling all posted double-digit increases. The survey also found that the top three promotion tactics utilized in 2003 were direct mail (identified by 36% of respondents), retail merchandising (35%) and coupons (32%), compared to 2002, in which the top tactics were online promotions (15% of total respondents), research (13%) and in-store initiatives (10%).

In surveying agency executives, 31% indicated that their promotion clients increased spending in 2003 compared to the previous year, while 29% reported no change. Consistent with client activity, 65% of agencies reported revenue increases, with 36% even reaching double-digit growth. As such, agency execs are increasingly optimistic for 2004, with the highest percentage (24%) expecting 11-25% growth in the coming year.

Promotion remains key to marketers’ success. Most marketers (53%) see integrated promotion marketing as a way to win both short-term sales objectives and longer-term brand loyalty goals. Among those marketers surveyed, 53% develop promotion as part of their overall marketing strategy and 79% felt integration of promotion, advertising and public relations was “very” to “extremely important” to a brand’s overall success.

2003 PROMO Magazine Annual Report on the Promotion Marketing Industry

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2003 Promotion Trends – A Power point Presentation and Report

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http://www.pmalink.org/resources/PMAMarch03.ppt

Promotions and Demographics Survey

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http://www.pmalink.org/research/PMAsurvey.pdf

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