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.
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.
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.
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!