DIGITAL MARKETING HUB v2.0 - AdExchanger

Digital Marketing Hub v2.0
BMO Capital Markets
Exhibit 11. US Marketing Spending: Trade Promotion Included and Not Included
Software/Tech
1%
Data-
Intelligence
5%
Agency/Mkt
BPO fees
12%
Advertising
48%
Agency/Mkt
BPO fees
8%
Software/Tech
1%
Data-Intelligence
4%
Trade promotion
32%
Marketing
Services
34%
U.S. marketing spending ex. trade promotion
Marketing
Services
23%
Advertising
32%
Source: GroupM, DMA/Winterberry/Acxiom/Teradata, IDC, DemandTec, AdAge Data Center
U.S. marketing spending including trade promotion
Finally, our analysis does not include marketers’ in-house costs. Be that internal creative
personnel, data analysts, “marketing IT departments” or the chief marketing officer herself,
these are not immaterial and particularly relevant to the ad agencies as it is these internal costs
that they hope to capture with their outsourced business services.
Quick Look at the Buyside
The top categories of spending start with consumer packaged good (CPG) and food &
beverage (F&B), which are often combined and categorized as “fast moving consumer
goods” (FMCG). CPGs include companies like Proctor & Gamble, Unilever, and Colgate-
Palmolive, while food and beverage includes the likes of Coca-Cola, Kraft, Pepsi, and Diageo.
Next in the pecking order normally comes auto (General Motors, Chrysler, Toyota, etc.),
while Tech-Media-Telecom (AT&T, Verizon, Time Warner) is sizable, if top-heavy. Healthcare
is lead by top 10 spenders Pfizer and Johnson & Johnson, but faces some near-term challenges
as many major pharmaceuticals come off patent. Retail (Wal-Mart, Home Depot, etc.)
rounds out the top spending verticals.
A member of BMO
Financial Group
23
June 7, 2012