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Outstanding Increase in Predicted Online Ad Expenditures for 2012, Help Companies Decide Where to Spend Their Marketing Dollars

Published Oct 10, 2011

In 2008, a Forrester report predicted, “Interactive marketing spending in the US will more than triple over the next five years, reaching $61 billion by 2012”. According to a press release from eMarketer, “The US online advertising market is poised for rapid growth this year, with spending expected to exceed $31 billion, according to a new forecast”. eMarketer also broke down how the money would be spent, saying, “This year, US advertisers will spend $14.38 billion on search ads and $12.33 billion on online display ads, up 19.8% (search) and 24.5% (display), respectively, over 2010.” People are spending less in print advertising, and more in online advertising because the campaigns are more trackable and directly correlated to a dollar amount spent per lead received from the ad.

The rise in digital advertising use for branding purposes is directly correlated to the rise in display ad usage. Branding, and creating a cohesive brand image is incredibly important. Creating a strong brand is important because there are countless companies in a marketplace that continues to grow every day, all targeting a limited audience.

A strong brand, poised to connect with a uniquely targeted company will help your brand survive in an arena where most brands fail.

The concept spans everything from logo design, web presence design, branded e-mails/newsletters, to the voice and tone used to communicate with a company’s audience.
Robert Hof, of Forbes, believes there will be changes within the online advertising realm over the next year. Hof hypothesizes that in 2012:

  • Spending on social media will grow slowly.
  • Display ads will continue to be on the rise (with spending reaching $28 million by 2016).
  • Daily deals will decline.
  • Mobile ads will overtake social ads and e-mail marketing.

  • Three years ago, Forrester released a report theorizing that by 2012 interactive marketing efforts would absorb marketing efforts in all media from print to online. No longer would the interactive media department be a separate entity in a company. The report goes on to say, “The growth in interactive marketing spending represents a 27 percent compound annual growth rate over the next five years. Interactive marketing, which currently comprises 8 percent of all ad spending, will grow to 18 percent of total ad budgets in five years”. Over the last three years, we have seen this to be just the case.

    No longer do most companies have fragmentation in their marketing efforts. Traditional print and online efforts are now working cohesively to build a strong brand image that permeates into every facet of their customer’s lives.

    This is a concept that CMDS has believed in since it’s conception in 2001. CMDS started in 2001 as a traditional advertising agency, designing magazine ads, billboards, creating custom packaging, elaborate corporate folders and supporting materials. CMDS over the years, has become a leading web design company, SEO company, PPC management and Internet marketing services company. To learn more about how CMDS can help you market your business click here.

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