Advertising has Changed

• Wednesday, 15 July 2009
• By Catheryn York
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Forrester Research interviewed marketers about their plans for the future and based on the response have made some projections. Here is a summary of the marketing forecast:

• Marketers have learned that interactive marketing is more effective, and advertising less effective, per dollar spent. While budgets for online have decreased in this economic market, they decreased less than other budgets.
• Digital marketing is no longer experimental. More than half of the marketers surveyed said that effectiveness of direct mail, television, magazines, outdoor, newspapers, and radio would stay the same or decrease within three years. In contrast, well over 70% expected the effectiveness of channels like created social media, online video, and mobile marketing to increase.
• The result is that digital, which will be about 12% of overall advertising spend in 2009, is likely to grow to about 21% in five years.
• It means we are all digital marketers now, since digital is at the center of many campaigns anyway. It means media is in trouble, or at least in the middle of a transformation.
• And it means that social "media", which will account for $716 million this year between social network campaigns and agency fees, will generate $3 billion in five years. And this doesn't even count displays ads on social networks (which are in the display ads category.) Of all the parts of digital marketing, social network marketing one is poised for the most explosive growth.

For the full article please see Josh Bernoffs blog entry

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