Your Marketing and Design Reading for The Weekend
I know my small budget doesn't move the needle but still believe it is important to follow the spending trends in marketing to confirm we are knowledgeable and making smart choices for our businesses (regardless of size). According to eMarketer, digital ad spending will rise 16.6% this year and there will be double-digit growth through 2014. Interestingly enough, eMarketer lowered the projected rate of increase from 17.7% previously because the digital ad spending market is approaching maturity faster than expected.
Google, Yahoo!, Microsoft, Facebook and AOL will take in $23.9 billion in ad revenues, which is almost two-thirds of digital ad spending in 2012. Google alone will have 41.3% of total digital ad revenues. Search is the leading category for spending but its share will begin to drop this year as rich media, sponsorship and video categories increase. Digital video will have the highest growth rate at 46.5%.
Those of us at Affinity Express are pretty happy that video, rich media and banner ads are all growing at a healthy pace. We added digital ads as a product several years ago but video is one of our newer services and we've definitely seen the adoption rate climb among our clients.
Duke University's Fuqua School of Business and the American Marketing Association surveyed 531 senior marketers at B2B and B2C companies in the U.S. this summer. When asked how optimistic they are about the overall U.S. economy on a scale of 0 to 100, with 100 being most optimistic, the average response was 58.4, down from 63.4 in February. The apparent reason is that people expected that once the economy started to improve, there would be a consistent rate of recovery but things have slowed down a bit.
- CMOs reported that marketing spending growth has slowed, with average budgets projected to increase 6.4% over the next 12 months, down from 8.1% average growth. B2B marketing budget growth will lag behind B2C.
- The most significant growth will come from B2C product companies (8.6% increase)
- The next highest growth will come from B2C service companies (6.8%) (yeah!)
- B2B service companies will increase their marketing budgets an average 6.2% (no change from February).
- B2B product companies will increase marketing budgets 5.7%
- B2B service companies will also increase their budgets for developing new products and services at a higher rate than the other groups and the average will be a 4.2% increase. They will also increase their budgets at a higher rate for diversification strategy than other groups (2.2%).
All groups will decrease their spending on market penetration strategy. As Christine Moorman, senior professor of business administration at Fuqua School of Business, commented, "You can't keep doing what you've been doing. You have to try new things."