Recent studies confirm ad industry speculation that non-traditional media spending is closing in on expenditures for more traditional media among U.S. advertisers.

The 62nd annual Advertising Age Agency Report released in April showed that total U.S. marketing communications revenue was up 7.2% in 2005 and that growth in marketing services more than doubled that of traditional advertising. Marketing services, which includes all forms of interactive, sales promotion and direct marketing, grew 11.3% to $7.66 billion in revenue, while traditional advertising, including its media component, advanced to $12.02 billion, a rise of only 5.1%. The report analyzed revenue from 606 advertising and marketing services agencies.

“The ascendancy of marketing services gives substance to what many agencies have been observing, that clients have begun to shift spending from mass media to alternate forms of marketing that reach consumers where they are – at the office, on the Internet, playing games, using cell phones and DVRs, in stores, on the street,” the report said, adding that marketing services are quenching the advertiser’s thirst for return-on-investment because of their measurability.

Nielsen Media Research released its U.S. ad spending figures for 2005 in March, showing that marketers overall spent 4.2% more than in 2004. The report indicated that the Internet, Spanish-language TV and cable TV saw the biggest increases, with national newspapers and network TV seeing the largest declines. Internet ad spending was up 23%.

According to a report on MediaPost.com, a ZenithOptimedia study forecasts that Internet ad spending will overtake outdoor in 2007 and pull alongside radio in 2008. “We now predict (the Internet) will attract 6.5% of all advertising in 2008, up from 4.5% in 2005,” the study concluded.

Finally, results of a recent survey of 1,200 advertisers released by Outsell, Inc., and reported on Clickz.com, indicate 80% of advertisers now include the Internet in their marketing mix, allotting much of their budget to their own web sites. “Advertisers are hooked on the results they’re getting from targeted and measurable online marketing methods,” the report concluded. In 2006, online marketing spending is expected to increase 19%, eight times TV and radio’s expected 2.4% rise, and six times print’s 3.3% rise. The report points out that while print and TV/radio are losing share in the marketing mix, they aren’t dead yet. “Marketers will continue to find strong value in the power of a mix of methods for reaching and influencing prospects,” the study reported.

To keep ahead of the rush to capitalize on online marketing, consult with an integrated marketing firm like MillerWhite, LLC. MillerWhite is well qualified to analyze your business’s web site and marketing position and recommend the proper mix of marketing tactics to reach your targeted audiences.