2013: The Year of Digital Brands
Many of us realized the importance and started exploring the full potential of digital. While Standard Media Index (SMI) recorded a rise of 4% in U.S. ad spending during the first two months of 2013 versus the same period in 2012, digital spending (including online display, video, search, social, mobile, email, etc.), accounts for the second-biggest share of media spending, representing more than a fifth (21.7%) of the buys made by the major agencies. As a category, digital media buys expanded 16% during the first two months, led by a 12% increase in premium display, a 6% gain in search and a 23% surge on ad networks.
Marketers are increasingly investing a greater chunk of their marketing budget in digital because it includes better metrics, targeted outreach and the ability to connect with consumers in their comfort zone. But another factor is also working in digital's favor: savings. As overall marketing budgets increase by an average of 6%, as researched by Gartner, much of the increase in digital spending will come from marketers reinvesting cost savings. When asked how they were funding their digital marketing programs, 41% answered that they were saving money by replacing traditional tactics with digital tactics and that this savings was funding further investment. Another 28% responded that they decreased traditional marketing budgets to free up funds for digital.