What does 2011 hold for digital marketing? Research analysts are in general agreement that this media format will again experience double-digit growth rates. In part, the growth will be fueled by increasing expenditures on mobile advertising and online videos.
PriceWaterhouseCoopers analysts expect total online ad spending to reach $28.5 billion in 2011. This level marks a 10.5% jump over the 2010 predicted year-end value of $25.8 billion. Look for mobile ad spending to surpass the $1 billion mark in 2011. A 48% growth rate means mobile marketers will close out 2011 with a total spend rate of $1.102 billion. And marketers will continue pouring money into online video ads and by the end of 2011, that market will be valued at $1.97 billion.
Market watchers also expect social media to continue its meteoric rise. Consumers seeking connections with friends, families and favorite brands drove traffic on Facebook to a new high in 2010. In March, traffic volume at Facebook surpassed Google. And Facebook’s revenue is predicted to reach $1.060 billion in 2011.
Regardless of privacy concerns, marketers will up their purchases of display ads based on real-time information. Kurt Unkel, senior vice president and director at VivaKi Nerve Center predicts 25% of online display ads will be sold in this fashion.
The big unknown in the digital world is what effect it will have on the traditional TV market. If Internet TV gains traction, the ad market could be due for another seismic shift toward digital as advertisers race to keep up with consumer attention. But Howard Bass, senior partner at Ernst & Young, cautions that vendors must first deliver ease of use among various devices and platforms in order to win over the consumer market.[Source: Shields, Mike. Forecast Digital 2011. AdweekMedia Forecast 2011. Adweek.com. 12 Dec. 2010. Web 27 Dec. 2010]