Digital Advertising Spending Grows
Is TV advertising going the way of the dodo? Not quite. But Forrester Research predicts that by 2016, digital advertising spend will surpass TV advertising for the first time ever. Advertisers are expected to spend a combined $103 billion on digital advertising, including search and display advertising campaigns, email marketing and social media advertising.
Although our clients don’t typically advertise on television, we’ve seen a definite trend of increased spending in the digital space. Digital advertising makes sense for bike shops as campaigns are typically scalable, highly targeted, deliver solid results and are measurable.
If you look at the chart below you will see that the bulk of industry spending is in search advertising, with vendors such as Google and Bing. Search advertising – which attracts consumers who are already engaged in trying to find a specific product – is popular because campaigns are relatively easy to implement and businesses are under so much pressure to appear on page one of search results. Search advertising helps businesses appear at the top of search results with paid listings even if organic search results fall short. Most Harvest clients are allocating money for a monthly spend in search advertising, with some dealerships implementing complex campaigns to compete for virtually any cycling search within their target market.
Display advertising is growing in popularity. Display ads are graphics that appear on websites as consumers use the internet. These types of campaigns reach more passive users with messaging that helps improve overall awareness of your brand and potentially increase your market share. (example: an ad for a sale you’re running appears on a consumer’s Yahoo! Mail screen when they log in to check email) Display ads are getting easier to implement, with Google and Facebook each improving the usability of their display ad networks. More and more Harvest customers are implementing display ad campaigns to promote unique services, sale events or compelling products. Display ad spending also includes remarketing ads which are visual ads that follow consumers after they have visited a page on your website.
Forrester also reports increases in email marketing and social marketing. The social space was once viewed as “free” advertising, but more businesses are spending on new advertising tools recently launched by Facebook and Twitter to help capture a broader audience. This move has been prompted by changes the social services have made to limit the organic reach of messages from businesses in order to increase revenue. Most Harvest customers have made the adjustment and are allocating monthly and seasonal spending for social advertising.
Email marketing continues to grow but the overall cost of these programs is relatively low. Harvest clients are seeing increased spending in email marketing as a result of implementation of automated email marketing campaigns and an increase of frequency in order to stimulate ecommerce business.
This new research reinforces what we already know: advertising spending is following consumers as they shift their attention away from static television watching into more interactive online experiences.
A comprehensive digital advertising program can help gain a presence on the computer screens of existing and new customers. Do you have a game plan for digital marketing success? Let Harvest help.