Tuesday, July 14, 2009

60% of Marketers Shifting Spending to Social, Mobile, Online

Six in ten marketers surveyed by Forrester Research say they will increase their interactive marketing budgets by shifting funds from traditional media. Among the channels, it looks like direct mail will be among the biggest losers.

About 40 percent of respondents say they will be cutting it in favor of social, mobile or online. But 35 percent of marketers also say newspaper advertising budgets will be pared. Some 28 percent say they will shift budgets away from magazines while 12 percent say they will shift funds from TV campaigns.

But you might not see most of the movement until the current recession ends, as ad budgets overall are so tight that marketers cannot experiment much.

Among the interactive channels, Forrester sees social media and mobile marketing spending expanding significantly between 2009 and 2014, with social media jumping by 34 percent on a compounded annual basis and mobile marketing increasing by 27 percent.

But these are young channels, at least as compared with relatively mature interactive mediums such as e-mail, display advertising and search. Social media’s increase reflects a starting point of $716 million in 2009 (seen as increasing to $3.11 billion by 2014). Mobile marketing expenditures stand at 319 million this year, and are seen as jumping to $1.27 billion by 2014.

In comparison, online display advertising, which currently stands at $7.83 billion, will rise by 17 percent annually, ending up at $16.9 billion in 2014. Search marketing, which currently sucks up $15.39 billion in spending, will jump by 15 percent, to $31.59 billion, and email, now at $1.25 billion, will increase 11 percent, to 2.08 billion.

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