How much money do large corporations spend for advertising?

Are local businesses just shifting money away from traditional advertising/marketing channels into online/mobile channels or are they actually increasing their total ad spend?

• is the size of the local advertising market growing because of better, more measurable ad forms online and on mobile? Any data or sources would be appreciated.

• Answer:

  Great question!  Local advertisers (as a group) don't typically increase their total ad spending, unless it's an adjustment for inflation. That means if they increase their ad spending in one medium, they take it from somewhere else. But in 2000 local advertisers were spending $109 billion on media, while in 2010 they spent $90.5 billion.  That's an $18.5 billion drop in annual advertising. Meanwhile, the amount that local advertisers have spent on local online media has gone from $1 billion in 2000 to $13.5 billion last year. Clearly there's been a massive exodus from newspapers, local magazines and yellow pages as local businesses find more efficient buys on the Internet. The REAL story, however, is that ad-spending growth isn't returning, while the "non advertising" expenditures is increasing. Advertisers are spending more and more on their own websites and on things like SEO (technically not advertising), reputation and social media management, and on discounting their services steeply (hence Groupon's and LivingSocial's popularity) to get people in the door. Because the Internet is less of an advertising medium and more of a communications utility, it plays directly into that "non-advertising" category.  The Internet has disintermediated media by allowing advertisers to "go direct" to consumers in many ways.  They need media to spread the word about their websites, their SMS-based loyalty programs and their contests and deals -- but they need it less than they did in the past.  Happy to furnish more details if anybody wants it.  We've tracked local advertising so closely in the past decade that many of us have become very boring at cocktail parties.