With spending on interactive advertising poised to reach $55 billion by 2014, marketers are looking for ways to optimize their return on investment. Currently, a significant percentage of digital spending goes to display and search. Most large marketers are using unsophisticated tools to track their spending. Analysts believe more marketers will be turning to dedicated platforms to improve campaign management and outcomes.
Late last year, Forrester Consulting studied large marketers engaged in paid search and display advertising for Efficient Frontier. Well over half of the study participants spend more than $100,000 a month for paid search and display marketing. Yet because online advertising has grown rapidly over the past few years, most organizations have not created or purchased effective tools to manage and optimize their expenditures. Currently, a significant majority, 60%, use spreadsheets.
The spreadsheet method makes it difficult for marketers to manage:
- Cross-channel attribution (32%)
- Budget distribution (27%)
- Multichannel dashboard reporting (25%)
Many study participants say they need a dedicated online ad management platform to help them improve measurement of combined search and display campaigns. This type of system makes it easier for marketers to jointly manage search and display advertising. Marketers would also like to incorporate email marketing and social media into an ad management platform. Executives perceive that a new ad platform will help them overcome the problems of limited staffing and budgets as they improve efficiency.
Now that interactive is grabbing more of the traditional marketing budget, marketers will likely be investing in tools to help them improve their digital campaign outcomes.[Source: The Case for a Dedicated Online Ad Management Platform. Efficientfrontier.com. December 2010. Web. 25 Jan. 2011]