Friday, October 26, 2007

eMarketing Spending to Reach $61 Billion by 2012

According to a new Forrester Research report, interactive marketing spending in the United States will triple over the next 5 years, reaching $61 billion by 2012. The growth is expected to be 27 percent annually. The catagory interactive marketing, 8 percent of all ad spending, is expected to grow to 18 percent of total ad budgets by 2012.

Forrester Research Principal Analyst Shar VanBoskirk, said "As firms continue to make customer centricity a higher priority, they will recognize that maintaining separate marketing teams to manage different sets of channels that all target the same customers makes no sense," ... (as) interactive technologies gradually infiltrate... such traditional paragons as television, billboards, and direct mail... the concept of a separate interactive mark eting organization will disappear."

The survey included 344 interactive marketing professionals and was highlighted decisions affecting display ads, search, email marketing, online video, and emerging media (social, mobile, and advergaming).

The report's highlights include:

  • Search engine marketing will triple in five years. The aggressive use of search marketing will grow the category 26 percent to $25 billion by 2012 due to the increasing paid search costs, new tools and services, and international expansion.
  • Display advertising (Banners & Sponsorships) will reach $14 billion by 2012. As branding being more accepted online, display ads will an important role for all interactive campaigns
  • Online video ads will significantly increase 72 percent to $7.1 billion by 2012 as viddeos become consumed at an increasing rate.
  • Social media and SM optimization will drive emerging channels to $10, a $6.9 billion increase. Emerging uses of social media, mobile, game marketing, widgets, podcasts, were included in this figure.
  • Little is spent today, but mobile marketing is expected to grow to $2.8 billion. People are becoming more familar with hand held mobile devices, and local search intent and proximity will allow targeted local advertising to off line businesses.