US Digital Marketing Forecast, 2014 To 2019

Forrester’s recent Dig­i­tal Mar­ket­ing fore­cast is filled with juicy stats and pro­vides a bright look into the future of dig­i­tal mar­ket­ing trend and bud­gets.  For­rester out­lines the dig­i­tal mar­ket­ing bud­get trends and expects Dig­i­tal Mar­ket­ing spend will final­ly sur­pass TV spend by 2015 — a major adver­tis­ing shift that’s been years in the mak­ing.

Overview:  US Digital Marketing Forecast (2014−2019) Expected to Hit $103b by 2019

Search mar­ket­ing con­tin­ues to take the lion’s-share of dig­i­tal mar­ket­ing bud­gets with social media spend grow­ing at the steep­est rate.  By 2019 paid and organ­ic search will reach $45b!  The report sup­ports the notion that more com­pa­nies and agen­cies have a cross-chan­nel mar­ket­ing mix to sup­port their dig­i­tal efforts ver­sus a siloed pro­gram.  Media & Device pro­lif­er­a­tion allow us (mar­keters) more ways to buy media to tar­get cus­tomers at the right place, at the right time, in the right chan­nel and with the right mes­sage (and con­text).  The world is dig­i­tal and adver­tis­ing bud­gets are catch­ing up.

Digital Marketing spend forecast 2014-2019

Take Away 1:  Interactive marketing will overtake television advertising in 2016

We’ve been antic­i­pat­ing this for years and the inter­cept is about to hap­pen.  Today peo­ple spend an extra­or­di­nary amount of time online vs. in front of a tele­vi­sion and it’s time for mar­ket­ing bud­gets to shift in order to cap­ture the atten­tion of cus­tomers where they spend their time.

Digital marketing spend surpass TV

Take Away 2:    Content is Still King.

  • Brands are demand­ed to curate fresh con­tent.
  • Ad sat­u­ra­tion clut­ters the mar­ket­place there­fore brands must devel­op fresh, engag­ing con­tent to draw in cus­tomers.
  • Social Media will grow at the fastest rate.

Search Discovery’s Paid and Organ­ic teams col­lide when tack­ing the social space.  Our prac­tices exe­cute togeth­er and tack­le opti­miza­tion of fresh con­tent via social com­mu­ni­ties through SEO and con­tent mar­ket­ing and lever­age paid social adver­tis­ing to fur­ther ampli­fy great con­tent, dri­ve com­mu­ni­ty engage­ment and dri­ve action.

Social Media increased budgets

Take Away 3:  Resources and Experience Drive Growth

  • A recov­er­ing econ­o­my boosts tech con­fi­dence.  Cus­tomer-fac­ing soft­ware pur­chas­es will grow by 17% in both 2014 and 2015.  With Search Discovery’s invest­ment in devel­op­ing inno­v­a­tive soft­ware and tech­nolo­gies to solve client and indus­try chal­lenges, we are in a great posi­tion to bring solu­tions to the mar­ket.​
  • Media and Device Pro­lif­er­a­tion.  Cus­tomers have mul­ti­ple devices and pre­vi­ous­ly ad-free plat­forms are expand­ing their adver­tis­ing oppor­tu­ni­ties (i.e. Insta­gram, Twit­ter and Pin­ter­est).  Mar­keters now have more ways to inter­act with cus­tomers.  This is where mar­ket­ing gets excit­ing with test­ing and expand­ing a healthy cross-chan­nel media mix to dri­ve incre­men­tal return.
  • Per­for­mance Dri­ves Growth.  Mea­sure­ment is crit­i­cal to a campaign’s suc­cess.   The Search Dis­cov­ery team is well versed in mea­sure­ment and a leader in the ana­lyt­ics are­na.  From data reli­a­bil­i­ty and tag­ging strate­gies to test­ing and opti­miza­tion, our teams ensure data is at the core of deci­sion mak­ing.

Take Away 4:  Maturity & Innovation Inspires Growth

  • If Paid Search is close to its max with dimin­ish­ing returns, oth­er chan­nels like social, mobile, dis­play and con­tent mar­ket­ing are go-to’s for expand­ed bud­gets and incre­men­tal results.   Search Dis­cov­ery is set­up with gen­er­al­ist media teams to sup­port cross chan­nel dig­i­tal pro­grams to max­i­mize the dig­i­tal land­scape and fuel our client’s mar­ket­ing fun­nel to sup­port the dig­i­tal deci­sion jour­ney.
  • Google con­tin­ues to inno­vate and cre­ate new oppor­tu­ni­ties for spend­ing more in new areas (i.e. Prod­uct List­ing Ads, Remar­ket­ing Lists for Search, Agency Exclu­sive Betas)
  • Dis­play Re-tar­get­ing helps win incre­men­tal rev­enue per­for­mance and effi­cien­cy and typ­i­cal­ly takes bud­get away from oth­er media.
  • Online video is great for cre­at­ing new demand and find­ing new prospects.  Video is fore­cast­ed to see a steep increase in the next 5 years since 68% of US online con­sumers watch online videos 1x/month.
  • Mobile and tablet ads con­tin­ue to grow and cur­rent account for 24% of today’s dis­play media mar­ket.  Mobile/Tablet is fore­cast­ed to grow to 39% by 2019.

So what is con­tribut­ing to reduced spends and where is that invest­ment going?

Mea­sure­ment & Analy­sis leads to reduced waste and excess spend.  
Prop­er ana­lyt­ics and mea­sure­ment allows non-per­form­ers to bub­ble up and there­fore cut media spend that isn’t improv­ing the bot­tom line.  The more mature your mea­sure­ment and tech­nol­o­gy stack is, the more you are able to accu­rate­ly attribute suc­cess and con­fi­dent­ly adjust your media mix.

Con­tex­tu­al and Expe­ri­en­tial Mar­ket­ing.  
Large brands are sup­port­ing more tech­nol­o­gy enhance­ments to sup­port sales or con­tex­tu­al mar­ket­ing to sup­port the buy­ing jour­ney (like mobile apps and brand expe­ri­ences).

The future is bright and Search Dis­cov­ery is set­up to sup­port the trends with our stel­lar teams across paid media, SEO and ana­lyt­ics.  If you need help devel­op­ing a cross-chan­nel dig­i­tal mar­ket­ing pro­gram please reach out to us!