The “perpetual decline” of traditional advertising

Gordon Borrell ventures to new heights of profundity with a blog entry on the disconnect between traditional sales people and those who are a speaking a new language. It’s a great read, but here’s the real brilliance:

Let me offer the 40,000-foot view. Businesses will spend about $680 billion this year to market their products and services. One-third of that goes toward traditional media advertising; the rest goes to things like coupons, rebates, Web site development, contests, trade shows, and public relations.  Over the next five years, the amount spent on advertising is forecast to decline 7.5%.  The amount spent on everything else is expected to increase 24%.

Traditional media advertising has entered the era of perpetual decline.  Perpetual decline, my friends.  No more riding the annual tide.

I couldn’t agree more with Gordon, and this is the biggest nut to crack in trying to help local media companies prepare for the future.

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