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Trends in Digital Advertising Market

The popularity of Internet as a medium of communication and source of information has surged in the recent years and this has also affected the use of digital marketing to woo customers. Businesses today are using a variety of digital distribution channels to reach their customers in a timely, relevant, personal and cost effective manner. Direct emails, Facebook, Twitter, and the apps on smartphone and digital tablets are some of the channels in which brands are effectively connecting with customers.

Study by Yahoo! shows that digital marketing segment drew 15 billion Ducats in half of year in 2011. The global spending on digital advertising amounted to $14.9 billion in the first six months of 2011. This is 23 percent more than what was spent last the same period.

The use of social media has increased for marketing and the reasons are obvious. With more and more people joining the bandwagon on social networking sites everyday, marketers would not like to miss any opportunity to woo them before their competitors do. There were 225 million users of Twitter as per March 2011 reports and the current number of tweets per second is 1200. Facebook remains the most popular social media site with more than 750 million active users. When it comes to blogs on the Internet, 70 of the bloggers organically chirp about brands on their blogs. Naturally, the digital marketers want to advertise on these immensely popular social networking platforms. And now for the facts – the global ad revenues from social networks touched $5.54 billions and this will rise to $10 billion by the year 2013 as per a report on Tech Crunch.

Let us also check some of the digital marketing trends in the world of mobiles and smartphones. As per July 2011 data on Neilsen, more than 40 percent of the adult US mobile phone users specifically use smartphones. The figure is expected to cross the 50 percent mark by the end of year 2011. Businesses do not want to be left behind in the race to connect with their customers through these smartphones. As per a study by eMarketer, the total spending is expected to reach $1.23 billion by the end of year 2011. The year 2010 had witnessed a spending of $743 million and this year’s spending would be a 65 percent increase. The advertising amount typically includes the dollars spent on display ads, search ads and mobile video ads.

Marketing pros and advertisers have been traditionally reluctant to spend large amounts of their budgets on mobile advertising but recent trends indicate that resistance is diminishing. With the number of potential customers accessing the Internet through mobile devices steadily increasing, advertisers have started allocating more funds to mobile ads.

The reason for escalating budgets on advertising is not only due to the huge popularity of digital media. Another reason for which marketers prefer this mode is the ability to measure quick and often real time results of advertising. There are tools that let businesses know how often their ads are being clicked and what exactly attracts the attention of target audience.

Digital advertising indeed rocks – at least that’s what the stats portray!

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European Search Personality of the year 2014, Kristján Már Hauksson, is the Co-Founder and COO of SMFB Engine, based in Oslo, Norway. This newfound digital activation/marketing agency works closely with the award winning creative agency, SMFB, in making sure that each idea has the digital presence to make it fly. Kristján is a publish author on the topic Internet Marketing and Search Engine Marketing.