Posts Tagged ‘interactive marketing’
Veronis Suhler Stevenson (VSS) announces the publication of its newest Communications Industry Forecast (CIF) covering the years 2003-2013. VSS predicts that total communications spending will decline 1% in 2009 to $882.6 billion, but grow 3.6% per year over the next five years to over $1 trillion making communications the third fastest-growing sector of the U.S. economy over that period. Segments driven by end user spending and targeted marketing services are gaining even as traditional advertising is shrinking.
2008 and 2009 witnessed a major shift in the spending patterns in the communications industry as advertising became the smallest of the four major sectors in 2008 — a first for advertising since VSS began tracking the industry in 1986. While this period culminated a decade-long trend away from traditional advertising vehicles and towards institutional and consumer end-user spending and marketing services, it also highlighted the emergence of institutional and consumer communications as the dominant sectors in U.S. communications spending. VSS forecasts that the institutional sectors and various alternative media segments will drive overall communications spending for the next five years. More specifically, institutional end-user spending will remain the largest and fastest-growing communications sector, rising by 5.6% annually as a result of strong gains in business information services, particularly in the marketing and financial services sub-segments, and the for-profit higher education sub-segment of educational and training media and services. Alternative marketing segments – including branded entertainment and word-of-mouth marketing – will grow at 12.6% annually from 2008-2013 and will contribute to overall marketing services spending growth of 3.4% annually in the period 2008-2013.
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PR Week reports that interactive marketing will reach nearly $55 billion, representing almost a quarter of all marketing expenditures by 2014, according to a new report from Forrester Research.
The increase in interactive won’t expand advertising budgets but rather come at the expense of traditional advertising as marketers shift dollars to interactive marketing, such as social media, mobile marketing, and search and e-mail marketing and display ads, the analysts found.
Of the 200 marketers surveyed, 60% said they would fund an increase to their interactive marketing budget by shifting money away from traditional marketing.
Some of the reasons for this shift were poor economic conditions in which interactive tools are believed to be cheaper and more effective and measurable; increasingly interactive customer relationships; more strategic marketing organizations; a moribund print inventory; and proof that interactive marketing works.
The biggest growth area for interactive is expected to be social media. The spend on interactive campaigns through social networks, combined with agency fees for creating social media assets (community sites, internal blogs), will exceed $3 billion by 2014, a compound annual growth rate of 34%. And as that investment increases, marketers will “improve how they use social media to engage — not just reach — target audiences. This means more spend on multichannel social media campaigns instead of just buying banners on community sites,” according to the report.