6 Digital Marketing Growth Trends
Are you a lover of numbers? Are you always confident around them? A certain old saying goes “numbers never lie”, but they cannot really be meaningful if you cannot read between the lines. A number is just a value if by itself; their context is what gives them actual meaning.
To truly fathom the system where a number is in, you need to have a professional viewpoint, or less stringently, a deep comprehension of the industry in context. Mr. Christopher Kim, the Director of Strategic Programs at SAP illustrates 6 Ways Numbers Can Lie To Us, a view I completely agree with. Numbers can lie, yes, but there are those that can unearth vital details — in some instances, even providing a view of the future — that would have otherwise remained hidden. This is something all business owners, executives and managers should know.
According to Forrester Research, some profound foreboding facts are disagreeable for the US Digital Marketing growth in 2016. Since the US is one of the key digital marketing expenditure regions, these figures reveal a trustworthy trend. The period in comparison is between 2011 and 2016. See below:i
) 2016 will see Digital Marketing hitting USD76.6 Billion
That amount is enormous, but it only represents 35% of total advertising, almost double of the 19% in 2011. Dynamics used for measuring Digital Marketing growth include: Search Engine Marketing (SEM); Display Advertising; Mobile Marketing; Social Media Marketing (SMM) and Email Marketing.ii
) Search Engine Marketing is Projected to be 43.49% of the total, or USD33.3B
Though the largest chunk of the total, it has dropped by 11% compared to 2011. It is a pattern that is declining year by year, but it is expected to persist for a number of years more. SEM is used in two main ways: Paid Advertisement or Pay-Per-Click (PPC) and Search Engine Optimization (SEO). PPC uses a strict time on the basis of your campaign while SEO is a long-term must-do tactic that gives one of the best value-per-result ratios.iii
) Display Advertising is Projected to take 36.02% of total (USD27.6B)
Display Advertising expenditure will rise by 13.3% compared to 2011, mostly due to recently-launched services on biddable ads as well as improved online managing ad options. Display Advertising primarily uses logos; photographs and other graphical pictures; location maps; and the latest rich media.iv
) Mobile Marketing will take 10.75% of total (USD8.3B)
In 2011, Mobile Marketing was a fairly new concept, thus in 2016 it is expected to showcase a massive 124.4% growth, outshining spending in both SMM and Email Marketing. This makes sense since implementing the latter two is less costly. For SMEs that decide to do it in-house instead of out-sourcing to third-party agencies, this could even be free’. Mobile Marketing includes SMS and MMS advertising, as well as Mobile Web Banners and Posters located at the top and the bottom of the page respectively. Others are Mobile Games and Videos.v
) Social Media Marketing will take 6.52% of total (USD4.9B)
This will grow by 41.4% from 2011 as more businesses turn to it. Despite this, its cost is small, even almost free in some instances. Failing to out-source your SMM and presence could obviously be dangerous since you will lack knowledge and experience. If you choose this route, the least you need to do is contracting a business consultant who has social media expertise for some fundamental tips.vi
) Email marketing is Projected to be 3.22% (USD2.4B)
This is a decline of 36% from 2011. This is a class of ads belonging to the less pricey practices owing to the fact that today there exists a number of free tools that enable businesses to promote their voice via email almost with no cost.
So, Why Care?
Are you scheduling your future tactics and expenditure share? Adapt according to your business model and field. All practices cannot fit all businesses, and vice versa. Though customizing your targeting may not directly save you cash, it most likely will alter your ROI ratio due to the fact that it will be on the basis of what your audience needs. In addition, it is going to reflect a much more relevant and more valuable brand voice.
The graphical representation below is a comparison of the two years in respect of Digital Marketing expenses:
The Forrester report concludes by giving an intuition from search engine giants, Google and Yahoo, who are planning to embed ads into mobile device displays. Just to be true, I would like if this prediction goes on to prove wrong — otherwise, I cannot even figure out in my mind how an ad-kind-of mobile screen would be!
written by: KellyRolissen