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Spending on advertising and specialty media totaled $285.4 billion in 1999, up 7.5 percent, outpacing the 7.4 percent growth rate achieved in 1998. Companies typically incorporate both advertising and specialty media into their marketing programs, combining a variety of media from each of the two segments. The line between advertising and specialty media is blurring as traditional advertising agencies establish specialty media divisions and integrate specialty media into the advertising campaigns they create for their clients. The advertising segments are measured media, while the specialty media segments are non-measured.

The advertising industry encompasses advertising in broadcast and cable television, radio, newspapers, consumer and business magazines, the Internet, yellow pages and outdoor. In 1999 the market grew 8.2 percent to $166.1 billion, bolstered by strong performances from radio (up 12.3 percent), consumer magazines (up 9.0 percent) and outdoor (up 9.5 percent). Although it represents only 2.1 percent of the advertising market at $3.4 billion, Internet advertising's 78.7 percent growth rate contributed to the industry's gains in 1999.

Specialty media and marketing services consists of five categories of companies or company lines of business that include:

Advertising and Public Relations

Telephone Directory Publishing
Yellow Pages and other advertising-based directories.

Specialty Publishing
Various aspects of publishing, including comic books, and syndication.

Out-of-Home Media
Outdoor advertising, including billboards and blimps.

Direct Marketing and Promotional Services
Various sectors, including in-store marketing and promotion, direct mail, membership clubs, telemarketing, merchandising, and other components of promotion and direct marketing.

To learn more about the firm's financial advisory services, contact a Veronis Suhler merchant banking professional focused on the specialty media and marketing services industry:


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