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!