Hot off the press: Forrester’s US Digital Marketing Forecast 2016 To 2021. I’m proud to say that Forrester has been sizing spend on online and digital media for nearly twenty years. My colleague Jim Nail launched this research in 1998, and I have been authoring our forecast reports since 2004. Good thing neither Jim nor I has aged a day! This time, the key finding from our research is that over the next five years, marketers will invest in quality over quantity. What does this mean specifically for digital marketing budgets?
- US digital marketing spend will near $120 billion by 2021. Investment in paid search, display advertising, social media advertising, online video advertising and email marketing will pace to 46% of all advertising in five years.
- Working budgets will give ground to non-working ones. Overall, digital marketing is pacing at a healthy 11% compound annual growth rate between now and 2021. But this is not the experimental “spend on anything to see what works” investment that we saw between 2008-2012. Marketers are more mature now with capable measurement practices. This means they will spend judiciously on just what works for their goals. And many are dialing back pure digital advertising investment, prioritizing instead non-working investments in data, technology and customer experience.