Digital Ad Spending
Digital Ad Spending: King of the Ad Spending Mountain
Forrester is predicting that digital advertising will finally unseat the giant, TV advertising, within two years’ time. A bold prediction? Not really, especially when digital spending is expected to surpass $100 billion in five years’ time. That means digital ad spending will be more than one third of the market.
A year ago, this article would have been about how, despite the growth of online advertising, TV was still on top and looked to stay that way. What changed? The economy. Businesses were not pumping money into digital because it wasn’t working. Everyone knows it works. The facts are there. The problem was assets. When you don’t have extra advertising dollars in the budget, you stick with what you are comfortable with. With an upturn in the economy, companies are getting bolder with their funds and their marketing teams are now pumping a lot more into digital advertising.
The fact is that digital ad spending is out of the testing phase. Everyone has seen the ROI and they want to capitalize on it. Obviously, experimentation will continue, and the numbers will be reviewed over and over. However, as long as digital continues to produce conversions, it will continue to grab a larger share of the advertising dollar. As companies that are newer to digital get the bugs worked out in their marketing campaigns, this will increase digital spending even more. We can thus better understand the digital snowball now, after the gradual start.
What sits atop the digital marketing mountain? Search rules the digital marketing world. Thanks Google. Display advertising is the next most common form of digital advertising, followed by social media marketing. While all of these types of advertising are expected to expand, the most exponential growth is predicted for social media ad spending.
Don’t get me wrong, TV advertisement isn’t over. Digital ad spending is just going to steal the long-held throne.