U.S. digital marketing, including online, mobile, e-mail, search, gaming and interactive TV will increase nearly 16% to $53.86 billion in 2011, according to an exclusive Jack Myers Media Business Report analysis. (See detailed chart below) Recent reports published by eMarketer and the Internet Advertising Bureau focus exclusively on "online advertising," excluding the significant shifts of marketers' budgets from traditional forms of promotion and direct marketing into digital solutions.

Advertising investments in the digital assets of legacy media companies (including television, magazines, newspapers, radio, out-of-home) are forecast by Myers to increase 17.5% to $10.8 billion. Digital promotion tools such as e-mail, coupons and website investments will grow 14.4% to $18.4 billion. Digital originated advertising and marketing expenditures are estimated to increase 15.8% to $24.7 billion. This category includes search (+12.0%), online originated display advertising (+6.5%), social media (+60.0%), videogame advertising (+24.0%), mobile and apps (+40.0%), online originated video content advertising (+50.0%), and interactive/VOD/addressable TV advertising (+15.8%).

Market research firm eMarketer projects the U.S. online advertising market will increase 20.2% to $31.3 billion, but the report does not include several marketing categories that are shifting from legacy to digital applications. E-mail marketing, which is growing 12.0% this year, generates $16.0 billion from marketers, making it the largest category of digital marketing -- more than the total advertising investment in digital properties of all legacy media. By 2020, Myers forecasts that e-mail marketing will generate $34 billion while total advertising in the digital assets of legacy media will be nearly $40 billion.

Search marketing is, by far, the largest contributor to online marketing budgets, generating a projected $14 billion in 2011. Myers forecasts search will grow to more than $40 billion in 2020 but will be displaced by social marketing as the largest digital marketing category. Myers expects Social Marketing to surpass $46 billion in 2020. Detailed analyses of Myers' investment forecasts are available at http://www.jackmyers.com/commentary/media-business-report?c=n . Subscribers have site access; if you do not know your password, contact maryann@jackmyers.com.

Jack Myers Media Business Report              
Digital Advertising, Media and Marketing Growth 2011            
Data Based on January 2011  Report                  
(000,000) 2010 2011  
  % Change $ % Share % Change $ % Share  
DIGITAL PROMOTION              
E-Mail Marketing  8.5% 14,300 30.7 12.0% 16,016 29.7  
Coupons, Sales Promotion, Trade Promotion 35.0% 1,476 3.2 35.0% 1,992 3.7  
Custom Website Investments 40.0% 311 0.7 25.0% 389 0.7  
Promotion - Digital Only 11.0% 16,087 34.5 14.4% 18,397 34.2  
LEGACY MEDIA - DIGITAL              
Newspaper Advertising (Digital only) 12.0% 2,957 6.3 18.0% 3,489 6.5  
Yellow Pages (Digital only) -8.5% 2,132 4.6 0.0% 2,132 4.0  
Consumer Magazines Advertising (Digital only) 8.5% 975 2.1 25.0% 1,219 2.3  
Broadcast Network TV (Digital only) 40.0% 750 1.6 50.0% 1,126 2.1  
Cable/Satellite Network Television (Digital Only) 20.0% 678 1.5 22.5% 831 1.5  
Local & National Spot Broadcast TV (Digital only) 10.0% 650 1.4 10.0% 715 1.3  
Terrestrial Radio (Digital only) 25.0% 500 1.1 20.0% 600 1.1  
Business-to-Business Magazines (Digital only) 100.0% 360 0.8 30.0% 468 0.9  
Local/Regional Cable TV (Digital only) 30.0% 107 0.2 20.0% 129 0.2  
Broadcast Syndication (Digital only) 15.0% 76 0.2 15.0% 88 0.2  
Cinema Advertising (Digital only) 200.0% 1 0.0 8.0% 1 0.0  
Legacy Media - Digital Only 10.8% 9,187 19.7 17.5% 10,797 20.0  
DIGITAL ORIGINATED MARKETING              
Search Marketing  16.8% 12,498 26.8 12.0% 13,997 26.0  
Online Originated Display Advertising 9.2% 5,242 11.3 6.5% 5,582 10.4  
Social Media/WOM/Conversational Marketing 50.0% 1,200 2.6 60.0% 1,920 3.6  
Videogame Advertising 15.0% 1,044 2.2 24.0% 1,295 2.4  
Mobile & Apps Advertising 28.0% 914 2.0 40.0% 1,279 2.4  
Online Originated Video Content Advertising  55.0% 350 0.8 50.0% 525 1.0  
Interactive, VOD & Addressable TV Advertising 150.0% 50 0.1 40.0% 70 0.1  
Digital Originated Marketing 17.2% 21,298 45.7 15.8% 24,669 45.8  
               
TOTAL - DIGITAL MARKETING 13.7% $46,571 100 15.7% $53,863 100  
Source: Jack Myers Media Business Report© copyright 2011              
               
Media Advisory Group, Jack Myers and employees accept no responsibility for any action(s) taken as a result of this forecast.        
               
               
Myers Data has been recalibrated in 2010 to reflect updated industry insights, plus a proprietary calculation of the share of digital revenues being invested in each legacy medium.  
New categories have been added. The traditional separation of above and below the line budgets have been elimated. This data should not be used in comparison to prior Myers   
economic reports for 2009 and prior years, but should be presented indepently to prior forecasts and marketing spending estimates.      
               
References: Barclays Capital, BIA/Kelsey, CAB, Carat, Credit Suisse, Deutsche Bank Equity Research, DMA, eMarketer, Goldman Sachs, GroupM, IAB, JPMorgan Chase,  
Kantar Research, Magna Global, Morgan Stanley, MPA, Needham Research, Nielsen, PQ Media Alternative Media Research Series, PriceWaterhouseCoopers, RAB, TvB,    
UBS, Verona Suhler Stevenson Communications Industry Forecast, Wachovia, Wedbush, Zenith Optimedia.          
               

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