10 July 2009 | Author: L. Sutherland Head of Media Content
A report by the market analyst predicts that the spend will increase at a rate of 34 per cent annually for the next five years, marking the sharpest increase of any form of online marketing. The Interactive Marketing Forecast also estimates that social media spend in the US will shoot past the $3bn (£1.9bn) mark by 2014, leaving budgets for mobile and email in the dust. However, the figure will remain just a fraction of the amount that is spent on search and display campaigns every year.
According to Brand Republic, the start base for social media spend hovers around the $700m (£341m) mark in the US, meaning that the massive growth rate can be largely attributed to its fairly insubstantial budget stature at the moment.
The report also reveals that search and display advertising will continue to grow over the next five years, with spend for this year hitting around $15bn (£9.2bn) and $7bn (£4.3bn) respectively. It predicts that the US display ad market will increase by 17 per cent, to $16bn (£9.8bn), while search spend will grow 15 per cent to $31bn (£19 bn) by 2014.
A grim picture is painted for offline ad budgets however: Forrester predicts that online spend will attribute for 21 per cent of marketing budget in the next five years, a significant increase on 2009's 12 per cent.
The news comes just days after a study from AdWeekMedia and Harris Interactive suggested that banner ads don't grab attention. However, both studies are in agreement with the fact that online marketing is set to increase in all shapes and forms over the coming years
Social media spend set to sky rocket
It's news that won't come as a surprise to many industry players: Forrester Research has revealed that social media marketing budgets are set to sky rocket.A report by the market analyst predicts that the spend will increase at a rate of 34 per cent annually for the next five years, marking the sharpest increase of any form of online marketing. The Interactive Marketing Forecast also estimates that social media spend in the US will shoot past the $3bn (£1.9bn) mark by 2014, leaving budgets for mobile and email in the dust. However, the figure will remain just a fraction of the amount that is spent on search and display campaigns every year.
According to Brand Republic, the start base for social media spend hovers around the $700m (£341m) mark in the US, meaning that the massive growth rate can be largely attributed to its fairly insubstantial budget stature at the moment.
The report also reveals that search and display advertising will continue to grow over the next five years, with spend for this year hitting around $15bn (£9.2bn) and $7bn (£4.3bn) respectively. It predicts that the US display ad market will increase by 17 per cent, to $16bn (£9.8bn), while search spend will grow 15 per cent to $31bn (£19 bn) by 2014.
A grim picture is painted for offline ad budgets however: Forrester predicts that online spend will attribute for 21 per cent of marketing budget in the next five years, a significant increase on 2009's 12 per cent.
The news comes just days after a study from AdWeekMedia and Harris Interactive suggested that banner ads don't grab attention. However, both studies are in agreement with the fact that online marketing is set to increase in all shapes and forms over the coming years
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