U.S. Businesses Plan to Spend $615 Billion on Marketing In 2006

Blackfriars Marketing Index For The Third Quarter Falls To 136.

Oct 05, 2006, 01:00 ET from Blackfriars Communications, Inc.

    MAYNARD, Mass., Oct. 5 /PRNewswire/ -- Communications and research
 consultants Blackfriars Communications, Inc. (Blackfriars) today announced
 that it projects marketing spending at U.S. businesses will be nearly $615
 billion this year. This forecast is down $385 billion from 2005. In
 Blackfriars' second annual sizing of the U.S. marketing market, it found
 that 2006 marketing spending dropped to 4.7% of revenue this year from 8.9%
 last year. The manufacturing industry again spent the most on marketing in
 2006 with spending of $59 billion.
     Blackfriars also announced that it has set the Blackfriars Marketing
 Index at 136 for the third quarter of 2006. The Q3 index indicates that US
 companies expect to spend 36 percent more on marketing this quarter than
 they spent in an average quarter in 2005. Blackfriars also set its second
 quarter 2006 index of actual spending at 78, 68 points below the budgeted
 value in June. A graph of the last eleven quarters of Blackfriars Marketing
 Indices can be found at:
     "Marketing has struggled because of bad weather and higher fuel prices
 over the past twelve months," said Carl Howe, a principal of Blackfriars.
 "But if marketing were an industry, the $615 billion spent on marketing
 this year would still make it the ninth largest industry in the United
 States. It remains larger than the entire U.S. information and media
     To perform this research, Blackfriars collected data from 317 senior
 business executives about their marketing budgets, attitudes, and spending.
 Blackfriars then correlated this data with overall business spending from
 the 2002 U.S. Census and with gross domestic product data from the U.S.
 Bureau of Economic Analysis.
     Survey Shows Online Marketing's Growth Tempering
     A key finding of the survey was that advertising spending has fallen to
 $218 billion this year, of which $38 billion comprises online advertising.
 Online advertising is expected to consume seven percent of budgets, down
 from ten percent at the beginning of the year.
     "Companies are cutting back on all forms of marketing from last year,"
 said Howe. "But as they cut their budgets, they fall back on more
 traditional media and strategies. That's really too bad, because the
 measurability of online marketing allows executives to clearly demonstrate
 its value. That can be much harder to do with traditional media."
     Blackfriars distributes the Blackfriars Marketing Index each quarter as
 a benchmark for US marketing budgets and spending. Blackfriars has
 published a 28-page research report titled "Sizing US Marketing 2006."
 Included in this report are 2006 projections for marketing spending overall
 and spending projections by type of activity. It also includes analysis of
 marketing spending in six vertical industries. It has detailed breakdowns
 and rankings of the dollars spent by those vertical industries in twelve
 different categories of marketing activity such as advertising (both online
 and offline), direct mail and telemarketing, direct email, events, Web site
 development, and collateral development. This report is available for $695
 directly from Blackfriars and will also be distributed through
 MarketResearch.com, ResearchandMarkets.com, SourceMedia.com, and their
     About Blackfriars Communications, Inc.
     Blackfriars Communications, Inc., headquartered in Maynard, Mass.,
 improves how organizations communicate through consulting, executive
 training, and research services. With more than 25 years of experience in
 technology and marketing, Blackfriars' objective methodologies help
 companies distill, communicate, and deliver their value. On the Net:
 Blackfriars Communications, Inc. site: http://www.blackfriarsinc.com.
     Carl D. Howe
     Blackfriars Communications, Inc.

SOURCE Blackfriars Communications, Inc.