Digital marketing spend expected to increase in 2014
Posted on Feb 20, 2014 by YuMe
In a survey of 200 senior-level marketers and agency decision-makers with a minimum digital spend budget of $2 million last year, both groups expect digital video advertising to grow in 2014, according to a recent report by Conversant. Agencies are expected to see a 20 percent rise in digital spend this year, while brand marketers expect a 38 percent increase.
Despite these significant growth numbers, both marketers and agencies are expected to increase spending on proven digital video advertising channels while spending a much smaller amount on unproven tactics.
For businesses both large and small, video spending will continue to grow as 61 percent of marketing and advertising decision-makers say their 2014 digital plans include this channel in their strategy. Cross-device spending will also see growth as 59 percent of advertisers plan to invest more money in this area. Other channels expected to show an increase include display banners (57 percent) – most commonly used by small businesses for advertising purposes – and affiliate marketing (32 percent).
Other key findings in the Conversant report include 73 percent of marketers feel personal, one-to-one digital marketing is the wave of the future. However, agencies have differing opinions on the effectiveness of personalization. Nearly 44 percent of marketers strongly agree that personalized messages, as opposed to mass messages, are more effective in digital marketing. However, with relation to agencies, only 30 percent believe personalization is an effective marketing tool within the digital space.
Finally, real-time bidding – a new method of selling and buying online video advertising in real time – is expected to be an important strategy for those companies with digital spending budgets greater than $10 million. It is expected that 45 percent of budgets will go toward real-time bidding.
Both marketers and agencies would be wise to pay attention to the current digital video advertising trends helping to drive business. Whether video advertising, personalized marketing or real-time bidding, all of these can help you make the most of your marketing strategies and attract more customers.