Local businesses spent $169 billion on local promotions last year, roughly 82% more than the $93 billion they spent on local advertising, finds Borrell Associates in a new study. Spending on promotions will continue to climb this year, per the study’s forecast, reaching $176 billion, compared to $101 billion for local advertising. The researchers note that the increased spending on promotions may not be cannibilizing traditional ad dollars, which have been growing in their own right, albeit slowly, since 2010.
Rather, promotions spending seems to be drawn from cutbacks in agency fees, printing budgets and postage, as well as from ex-employees who handled marketing, and thinner profit margins. Read the rest at MarketingCharts.