Digital Marketing is Now Mainstream

Comments Off on Digital Marketing is Now Mainstream

Value Delivered is Nothing New.

The value delivered by Digital (or Online) Marketing is nothing new. It delivers,  or helps to deliver:

  • Insight into customer requirements
  • Customer Sales
  • Customer Service

Digital Marketing  uses the internet which has taken market share from Newspapers and other traditional media and provides new ways of gaining customer insight and delivering customer service.

But, Digital Marketing Is Now Mainstream

But, Digital Marketing is now Mainstream and must be a key part of any sales and marketing strategy.

In the US it is a substantial $26Bn business (2010  comScore):-

  • 15% year on year growth from 2009 (and 11% growth from 2008 – 2009 declined)
  • 16% of the total advertising spend  in the USA  in 2011  (comScore and IAB/Pwc)
  • 25% of predicted total advertising spend by 2015 (IAB/Pwc).
  • No.2 in spend to TV. Newspapers number 3.

Globally, it is an estimated $55Bn business (using Google splits of US/International as guide)

The UK it is £4.1 Bn and is about 25% of the total Advertising spend( Enders Analysis).

  • 13% year on year growth
  • 25% of total advertising spend

Search still dominates . Search is dominated by Google at approx 70% market share with Microsoft Bing at approx 24% (comScore) now that it has done deals with Facebook and Yahoo.

Display has shown good growth, driven by Social Media and led by Facebook. Facebook had approx 40% of all impressions in 2010 and passed the trillion mark with Yahoo next at half that amoun

Driven by the pull of Online Content

The growth in online content is pulling a greater audience online and keeping them there longer:-

  • Stores (From Cars to Music)
  • Entertainment (YouTube, BBC iPlayer etc)
  • News (Mainstream to Blogs, Video to Text)
  • Search
  • Social Networks

The growth in richness of the online content is enabled by the growth in bandwidth to the home (in UK average is 6Mb and growing )and the penetration of internet globally.

And Online Advertising Cost Effectiveness

And the growth in the sophistication and cost effectiveness of online advertising:-

  • Better targeting ( Using profiles on social networks and relevance by search or by product)
  • Performance based pricing (Pay on Click through – accounts for 65% of all search advertising)

Comments are closed.