Digital Ad Spend to Grow 8.9 Percent

Digital advertising spending will grow by 8.9 percent to $25.7 billion this year, and digital media consumption will approach 20 percent as a share of media. These were key statistics presented by Bruce Biegel, senior managing director of the Winterberry Group, a direct marketing consulting firm, during the Jan. 8 Direct Marketing Club of New York luncheon in New York City.

Digital advertising spending will grow by 8.9 percent to $25.7 billion this year, and digital media consumption will approach 20 percent as a share of media. These were key statistics presented by Bruce Biegel, senior managing director of the Winterberry Group, a direct marketing consulting firm, during the Jan. 8 Direct Marketing Club of New York luncheon in New York City.

In his presentation, “Outlook 2009: What to Expect in Direct & Digital Marketing,” Biegel pointed out that digital marketers will have to pay a lot more attention to measurement and analytics this year.

“Marketers need to solve the ‘Where did they come from and what happened when they got here’ questions,” he told attendees. This year, marketers also must improve digital channel integration — such as e-mail and search, and display and search — and will need to be more selective in what media and services they buy, and from whom.

E-mail will remain a cost-effective marketing channel, Biegel said, with e-mail spending projected to triple from $472 million in 2008 to $1.4 billion by 2012. This year, marketers also will focus on better e-mail integration with other channels, Biegel said, but will keep searching for the most relevant messages and most appropriate frequencies.

Even though search spending is projected to grow by only 15 percent this year — down from the 21 percent growth in 2008 — Biegel said the channel is still strong. “Search, with its strong ROI from trackable, performance-driven marketing, is recession-resistant,” Biegel said.

Other findings Biegel presented include:

  • online display spending growth is expected to grow to $4.9 billion in 2009, following a slowdown in the second half of 2008;
  • mobile marketing spending is projected to rise to $1 billion — up 28 percent over last year — driven by direct response and execution/measurement improvements; and
  • social media spending is projected to grow 10 percent to $1.3 billion, then face a slowdown later in the year.