In the next 4 years, spending on digital marketing will nearly double. Marketers will shift their media mix to fund $77 billion in digital advertising which will comprise 35% of all ad spending. Forrester Research analysts say there are several specific reasons for this growth.
According to Forrester, the digital universe will look something like this by 2016:
- Social media $4.995 (billion)
- Email marketing $2.468
- Mobile marketing $8.237
- Display advertising $27.600
- Search marketing $33.319
Every sector of digital will see growth, though some, such as mobile, will experience higher growth rates than others, such as search.
One reason this change is happening so quickly is that marketers are hiring interactive staff members and now have in-house expertise. As we emerge from the recession, marketers are also able to fund a wider range of initiatives. While many stayed with dependable and proven tools like email and search, they are now expanding their funding for mobile and social media. The era of Big Data is also cited as another reason for growth in digital. C‑suite executives can see exactly how their investment in these formats is paying off and they can quickly shift strategies when something isn’t working. In the past, they didn’t always have such precise information or flexibility. Analysts also say many marketers believe we have entered the age of the consumer. To stay connected with the consumers, businesses believe they need to ‘create customized experiences’, especially using the tools that customers are using – smartphones and tablets.
All of these factors will combine to push digital spending to the level where TV is now. While the Forrester numbers will likely be adjusted as we approach 2016 and as new technologies emerge, it’s clear that digital is now an established and significant component of the marketing mix for most advertisers.[Source: U.S. Interactive Marketing Forecast. Forresterresearch.com. Web. 17 May 2012]