Digital Marketing Spend Catapults to $53.9 Billion in 2011

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.

You are receiving this e-mail as a corporate subscriber to Jack Myers Media Business Report. Re-distribution in any form, except among approved individuals within your company, is prohibited. As a subscriber you have full access to all archives and reports at www.jackmyers.com. If you require your ID and password, contact maryann@jackmyers.com