Where are advertising pennies going?19 Nov
Just reading a very interesting post over at Social Media Explorer about US online advertising spends for the next 5 years based on research carried out by Forrester research which you can find here: http://www.forrester.com/Research/Document/Excerpt/0,7211,55668,00.html.
The main bit of interest to me is the current spend in the Financial Services Sector, which showed the following:
Search Marketing $11.00
Display Advertising $10.00
Email Marketing $3.20
Social Media $0.20
Mobile Marketing $0.75
Total IM Budget $25.15
Percentage of Total Marketing Spend 3%
Forrester Estimates (in Millions)
Two things jump out of this at me. Firstly, The huge gap in spend for email marketing. Most lead generators will drive a huge amount of traffic and leads from sending out emails, so I think someone is missing a trick there. There is still huge amounts to be made from email marketing to drive leads.
The second thing was that for all the hype about social media, finance companies in the US anyway don’t seem to be investing in it to the same degree as search marketing which seems to be the core foundation of online marketing, yet social media reach must be huge. It will go to show that the innovative early adopters will reap the rewards.
Are you looking at what you will do next year and where your advertising pennies will go. Maybe this will give you pause for thought about the kinds of things you should be looking at.
3 Responses to “Where are advertising pennies going?”
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Its interesting to see that Affiliate Spend still doesn’t figure in these reports despite becoming a more dependable arm of the money conscious marketer these days.
Maybe the huge difference in spends on Email, Mobile & Social media reflect the difference in ROI attributable to these sectors.
Would be good to see how ROI breaksdown in relation to the Display, Search & Affiliate Spends (if this information is attainable).
Andy Guest
Hi Andy,
I know what you mean, but sadly I don’t have the money to buy the full report. These things are usually quiet hefty!
That said I agree with you, we talk to clients all the time about affiliate marketing and it is surprising how many still don’t know what it is and how it can benefit their business.
Jason
Though from what I understand, the open rate on email in the US is dwindling rapidly. That’s why the UK is still bouyant, and so many companies are expanding into Europe which seems comparatively untapped.
We’re doing more multi-lingual recruitment than ever before for core-European languages (and Russian!).