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A The dawning era of micromarketing holds great promise for consumer marketers and the U. S. economy. By adding hugely to the overall supply of advertising time and space, the increase of new communications channels can be expected to control ad-ate inflation. Figuring out the right way to send the right message to the right person at the right time is difficult, but important. B The surprisingly impressive recent results of P&G suggest that targeting might also be a benefit to corporate productivity. In 2003, P&G spent $4.4 billion, or 10.1% of sales, on advertising. In 1998, the last time its spending reached 10%, unit sales volume rose by nearly 4%. Today, P&G unit growth rate is running closer to 9%. "They are spending about the same money and getting three times the lift." C At the same time, the fading of the age of mass marketing poses a threat to the traditional mass media and their heavily ad-dependent business models: To date, network TV and its mass brothers have held tight to the lion's share of advertising, despite their decreasing audiences. Even as prime-time ratings fell by 41.5% from 1977 to 2003, network TV's advertising revenues rose nearly fivefold, why keep paying more for less? For a marketer looking to build brand awareness or to convey a simple, timely message to a big swath of the country, there is no effective substitute for mass media, particularly TV. D Mass media's share of advertising is declining now as marketers boost spending on more targetable, narrowcast media. A recent study by a Wall Street firm predicts that the ad revenues of narrowcast media will grow at 13.5% a year from 2003 to 2010, while the mass media putter along at 3.5%—well below the projected 5.7% gain in gross domestic product, By 2010, as it is predicted, marketers will spend more for advertising on cable ($27 billion) and the Internet ($22.5 billion) than on network TV ($19.1 billion) or on magazines ($17.4 billion).
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Although mass media are losing audiences, they still have the biggest market share of advertising.
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At present, a business model depending greatly on ads is facing challenge.
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In the year of 2000, P&G spent less than 10% of sales on advertising.
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Enterprises have more choices when deciding where to broadcast ads.
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Nowadays, fewer people sit before televisions and enjoy TV programmes.
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Targetable channels of ads can be favourable to productivity.
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It is believed that in the future companies will spend more advertising fees on Internet.