As anyone who reads my research knows, I am the resident display ad technology geek on the Interactive Marketing team. I am fascinated by all things acronym-related, from DSPs to DMPs to RTB. And my experience co-launching Razorfish’s “agency trading desk,” ATOM Systems, in 2008 taught me a lot about what matters — and what doesn’t — in rolling out an audience-centric programmatic buying strategy, and what steps to take to set clients up for success.
Well, I thought it was time to share this story in my new report, The Future Of Digital Media Buying. It explores how digital media buying is dramatically transforming and outlines the steps marketers must take to succeed in this new digital media buying world.
The long and short: laser-focused, programmatic media buying is now a reality and that’s a good thing for you. Here’s what’s driving the opportunity:
By 2016, advertisers will spend $77 billion on interactive marketing – as much as they do on television today. Search marketing, display advertising, mobile marketing, email marketing, and social media will grow to 26%35% of all advertising spend within the next five years.**
What does this growth mean for you?
1) Interactive media has gained legitimacy in the marketing mix. In past forecasts, we found that interactive budgets grew because of marketing experiments, or firms looking for lower-cost alternatives to traditional media. No more. The next five years of growth comes from bigger interactive teams spending sizably to bake emerging media into their strategies for creating rich customer relationships.
2) Search’s share will shrink. Search marketing (paid search and SEO) will continue to own the largest portion of the interactive marketing pie. But its overall share will decline as marketers shift search spend into biddable display investments, mobile marketing, and even social media.
3) Display media will rally. Bolstered by advances in audience targeting and bid-based buying approaches, advertisers will renew their love affair with display media. We expect display investments to grow as marketers apply display instead of search. And niche or remnant inventory sells for higher prices due to demand-driven pricing.
I am back stateside after last week’s trip to Singapore for Microsoft’s audience targeting event, and I’m still recovering. Not only am I (slowly, painfully) readjusting to this time zone, I’m still processing everything I saw, experienced, and learned about the digital marketing ecosystem in Asia.
The abbreviated version for digital marketers with an Asian presence: There’s plenty of opportunity but lots of work to be done.
I was fortunate enough to meet with several agency folks while there – from Omnicom (OMG, Annalect), Publicis (Zenith), and WPP (MEC). And I was struck by two overarching themes:
Agencies want their clients to broaden the scope of their digital marketing endeavors – trying new audience targeting methods like retargeting and behavioral targeting, upgrading their approach to interactive measurement by choosing the right metrics and moving beyond last click attribution, investing more heavily in creative development to better match creative messaging to audience segment. But they are perhaps more conservative than their stateside counterparts when it comes to pushing for change.
Their clients aren’t doing much to help them change the status quo. I heard about click-based measurement, 2-3 week campaigns that leave little time for optimization and meaningful learnings, and, overall, sub-optimal investments in digital relative to traditional media.