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On a broader level, though, 62% expect to spend more than 30% of their marketing budgets on digital channels, representing a 17% increase from 53% in 2011. Concurrently, the proportion forecasting a spending level of just 0-9% dropped 19% from 21% to 17%. (February 2012) 1Brands are more likely to look internally to expand their digital marketing and communication initiatives: 62% said they would increase internal resources for these purposes, compared to 42% who said they would increase external resources. 28% said they would diversify agency partnerships and select agencies based on areas of expertise, while 19% will look to consolidate their agency partnerships. (February 2012) 2Results from that survey show that three-quarters of marketers rank specific sector experience between a 7 and 10 on a 10-point scale of importance (with 10 being the most important) when looking for a new agency. In fact, the highest proportions of respondents rank sector focus a 10, 9, or 7 (all at 20%) in importance when looking for a new agency, compared to only 8% combined ranking it a 4 or lower. (February 2012) 3Meanwhile, data from the SoDA “Q1 2012 Digital Marketing Outlook” indicates that blog writing, editing, and copywriting skill sets are in high demand, with 61% of respondents citing them as an increased priority this year, with a further 37% saying they are an ongoing priority. Other skill sets that are increasing in importance for a majority of respondents are mobile application development (57%), digital brand management and measurement (52%), and mobile site development (50%), with social media marketing (49%) following closely. (February 2012) 4Skill sets with the least amount of demand this year are social community site management and digital advertising creative development, slated as increased areas of priority for 37% and 36% of respondents, respectively. (February 2012) 5Word-of-mouth and online video are the leading areas respondents where anticipate focusing their earned media digital marketing efforts in the coming 1-2 years. (February 2012) 6Nielsen’s German division estimates that online ad spending in that country had a banner year in 2011, totaling €2.9 billion ($4.0 billion), an increase of 22.5%. This boosted online’s share of total ad spending to 11.2% for the year, compared to 9.4% in 2010. (February 2012) 7Nielsen’s figure is slightly conservative—its totals are based on prices advertised and do not include extra fees that might have been incurred. In contrast, eMarketer estimated total online ad spending in Germany at $5.6 billion in 2011. (February 2012) 8Digital marketing continues to be a priority for the majority of companies, with around two-thirds (68%) of client-side respondents reporting increases for their digital budgets over the next 12 months. On the supply side, three-quarters (75%) of agencies indicated their clients are planning to increase their digital marketing budgets in 2012. (January 2012) 9Companies surveyed are spending, on average, 36% of their total marketing budgets on digital, a slight decrease from 37% last year. (January 2012) 10 |
Over half of responding companies (54%) are spending under 30% of their marketing budgets on digital channels and just under a third (31%) are investing more than half of their marketing budgets in digital. (January 2012) 11Restricted budget for all types of marketing has remained the most significant barrier to investment in digital marketing for the third year in a row. While the proportion of company respondents mentioning this has decreased in the last year, from 48% in 2011 to 42% this year, it’s still the main issue preventing companies from investing more in digital channels. (January 2012) 12IgnitionOne found that European search advertising had a strong quarter, with spend (14%), clicks (22%), and CTR (19%) all increasing year-over-year. (January 2012) 13Western Europe is at the centre of the current economic turmoil, and we forecast it to grow by just 2.0% in 2012, even though the Olympics is being held in the UK (which means that the coverage will be broadcast at ideal times for Western European audiences) and most of the big markets will be participating in the European Football Championship. Assuming the economy improves by the end of next year, we forecast 2.8% growth in 2013 and 3.3% in 2014. (December 2011) 14Looking at previous examples of countries defaulting on their debts (such as Russia in 1998 or Argentina in 2002), and the wider regional effects of this default, we estimate that a default in two eurozone countries, coupled with deeper recession in the eurozone and other Western European markets, would bring growth in Western Europe down to -4.0%, but global ad expenditure would still grow by 3.2%. (December 2011) 15Most of the growth in global ad expenditure is now coming from developing markets, which we forecast to contribute 58% of new ad dollars between 2011 and 2014. Asia Pacific, Central & Eastern Europe and Latin America are all expanding much faster than the developed world, driven by both their current economic performance and their future potential. (December 2011) 16There are now two ‘developing’ markets in the world’s top ten ad markets, and there will be three in 2014. China is now the third-largest ad market in the world, and is catching up quickly with second-placed Japan. In 2005 China’s ad market was 23% of the size of Japan’s, in 2011 it is 66% and by 2014 we predict it to be 95%. Brazil, in sixth place, is 84% of the size of the UK in 2011 and will be 91% in 2014. Russia, which was in eleventh place in 2011, will be tenth in 2013 and ninth in 2014. (December 2011) 17eMarketer estimates total media ad spending in Western Europe will have grown 1.8% to $114.4 billion by the end of 2011. (December 2011) 18eMarketer previously forecast in June 2011 that ad spending in the region (western Europe) would grow 3% to $115.8 billion in 2011, before reaching $120.8 billion in 2012. (December 2011) 19On the other hand, online advertising is growing slightly faster than expected, 12.8%, to reach $24.5 billion in 2011, eMarketer estimates. It will climb 13.9% in 2012, to $27.9 billion. (December 2011) 20 |
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