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Marketing Spending Moves ‘Below the Line’

U.S. marketers are significantly shifting their spending from brand building to direct response-oriented promotional channels, according to a new report released today by Winterberry Group, a direct marketing consulting. The report was commissioned by V12 Group.

Winterberry Group defines ATL marketing channels as TV, radio and print advertising, as well as outdoor advertising and yellow pages. BTL marketing includes database marketing, direct mail, interactive marketing, insert media and promotional marketing.

According to the report, from 2003 through 2007, ATL advertising is expected to grow by an average of 5.5 percent per year, with BTL spending growing at 7.8 percent annually.

ATL spending was expected to grow 5.6 percent in 2005, a full 1.7 percent behind overall marketing spending. The difference will be more pronounced in 2007, as ATL spending will grow just 4.6 percent for the year, compared with 7.3 percent overall industry growth.

Led by interactive marketing - including search, e-mail and online advertising - nearly all BTL channels are projected to grow in excess of the 6.9 percent annual growth forecast for the whole industry   between 2003 and 2007.