Advertising-supported content has become the dominant business model for the internet, as demonstrated by our (AOL, Time Warner, NYSE:TWX) recent change from a membership-based model. Advertising Age recently released its study of the 100 top advertisers and how they spend their advertising dollars. For all the brouhaha about the internet, traditional print advertising still dominates the marketing plans of the top corporations. A breakdown of 2006 expenditures by ad distribution platform shows --
1. Magazines -- $29.83 billion
2. Newspapers -- $29.80 billion
3. Network TV -- $27.16 billion
4. Spot TV -- $17.23 billion
5. Cable TV networks -- $16.75 billion
6. Radio -- $11.06 billion
7. Internet -- $9.75 billion
8. Syndicated TV -- $4.2 billion
9. Outdoor -- $3.83 billion
also see 2006 Advertising recap II- The big rollers
However, total expenditures in the traditional venues of print, television and radio grew only .6% in 2006. Among the avenues not included in these statistics are paid search advertising spending, direct mail, and sales promotions. Including these types of advertising brings the increase up to 3.1% over 2005.
So who is spending this money?
By category
1. Automotive -- $19.80 billion
2. Retail -- $19.11 billion
3. Telecom – 10.95 billion
4. Pharmaceuticals -- $9.19 billion
5. General services -- $8.70 billion
6. Financial Services -- $8.69 billion
7. Food & beverage -- $7.23 billion
8. Personal care -- $5.73 billion
9. Travel -- $5.42 billion
10. Entertainment -- $5.38 billion
Tomorrow: Who are the biggest spenders?
Twitter finally reveals revenue ambition, wants to be Google -- but not yet
Google says: Chrome for Christmas
Why is gold marching higher? Ask the central bankers
