Is your business embedded in the online marketing mix?
It has been forecasted that U.S. investment in Search marketing, display advertising, email marketing, mobile marketing and social media will be close to $77 billion, and represent 26% of all advertising by 2016. * So how do you know which channel to invest in? Or do you invest in them all? Let’s take a look at each of these channels and see what their futures hold.
This channel will still hold the largest share of the interactive marketing world by growing to more than $33 billion over the next five years. But as marketers investigate, test, and perfect different strategies that allow their clients to be noticed on the web though channels other than search engines, search is forecasted to lose its share of 55% in today’s climate to 44% through the next five years. * Some of that share will be drawn to mobile and social networks. Even with this trend, search investments will increase due to improving search platforms and small to medium-sized businesses elevating their search marketing budgets.
With display advertising forecasted to reach $27.6 billion by 2016, * it is safe to say that this channel of advertising is here to stay. Better ad management tools, an increase in traditional search keyword costs, and brand advertisers moving offline budgets into display are just a few reasons why this channel will continue to grow. Whether they are static image ads and rich media ads, or online video, marketers’ investments into display advertising will increase its share 36% in five years.
I’ll bet you have heard this line for the past few years: “This is the year of the mobile.” Well, while that never really rang true in years past, I think we’re finally here. In 2011, spending on mobile search advertising blew right past email and social, and forecasted to reach $8.2 billion by 2016. * Some of the more obvious reasons for the increase are the creation of more relevant mobile ads through better targeting and more dynamic content, the increase of tablets and smartphone usage, and the growth of mobile commerce, which, in turn, will get marketers to invest in more ads.
Oh, email … the anchor of the interactive marketing world. While the forecast has email marketing nearing just $2.5 billion by 2016*, incorporating this strategy with other interactive channels will increase relevant delivery and response rates. The use of tablets and/or smartphones to encourage interested prospects to sign up for your e-newsletter or compiling email addresses through a blogger that someone wishes to subscribe to are just a few ways that you can use these other channels to create a better email marketing mix. With the technological advancements of email analytics, marketers are looking to use the strategy of quality over quantity. Targeting people who you know have already taken an interest in your company’s mission or product can increase your relevancy response rate by a huge margin.
And now for the newcomer to the mix (well, not that new). At first, one must think this is where most of the growth will be coming from over the next five years, and while marketers are pressing forward and investing in social media, the actual spend is relatively low. This marketing channel has a forecast of about $4.4 billion, and accounts for just 7% of interactive spend by 2016. * How can this be? Well, as mentioned, social media costs are low compared to other interactive marketing channels. With social media sites not really diving into the paid platforms (and if they are, they are very limited), it means that more focus will be on the people who manage social media accounts, making sure they are listening, engaged and possess a high degree of social acumen. After all, this is a personal communication platform.
Now that we have overloaded your brain with a bunch of facts and figures of where the interactive world is headed, you have a little more insight to the research and progression that the interactive team here at Nexus Direct keeps up-to-date on. We pride ourselves on knowing where the latest trends, technologies and strategies are coming from so that we can use these tactics to benefit all of our clients.
* US Interactive Marketing Forecast 2011 To 2016. By Shar VanBoskirk, Forrester Research, INC