B2B Interactive Marketing Forecast Revised
Digital advertising is expected to continue growing steadily through 2016. Forrester Research forecasters believe a compound annual growth rate (CAGR) of 17% is in store over the next 4 years. This growth rate will bring total digital spending to $77 billion and the sector will account for 26% of all ad spending.
Forrester also offered its perspective on how various industries will increase their digital spending during this time period. For the most past, traditional offline industries will shift a larger percentage of their budgets online. This includes automotive (24.5% CAGR), healthcare (21.2% CAGR), and consumer products (23.9% CAGR). Of those 3 industries, automotive will be spending the most on online, a predicted $6.248 billion.
Financial services is expected to top spending over all other industries. Online ad spending in this sector is already the highest in 2011 at $6.856 billion and will reach $15 billion by 2016.
On the other hand, the early adopters of online advertising will be slowing the funds they allocate to this format. Tech companies, predicted to end this year with $2.288 billion in online spending, will top out at $4.214 billion in 2016. The B2B sector will grow 14.4% between 2011 and 2016 and reach $5.7 billion at that point. However, analysts also noted that B2B marketers will generously fund social media, funneling up to $639 million to that channel by 2016, a figure that would mark a 38% CAGR.[Source: B2B interactive Marketing Spend Forecast Lower. Marketingprofs.com. 21 Nov. 2011. Web. 7 Dec. 2011]