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Where is Interactive Marketing Going?

Forrester released a great study in 2011 about Interactive Marketing in a forcast up to 2016. Specifically the report section I wanted to share was regarding amount spent in terms of budgets, and planning for those budgets. Here is that segment:

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 35% of all advertising spend as they are embedded in the marketing mix.

When interactive marketing reaches 35% of all advertising it will be the second-largest line item in the marketing budget. We think this will make interactive marketers even more influential over marketing budgets and CMO agendas.

Plan based on customers, not past budgets.

Marketers determine what marketing resources affect key decision points along customers’ paths to purchase, but most marketers still budget based on last year’s channel-specific spend or industry benchmarks. We like benchmarks too, but they can’t be your only budget input.

Take this approach instead:

  1. determine key audiences;
  2. identify points of influence along their typical paths to purchase;
  3. test to see how much of what medium, through what channel, will drive desired actions at critical points;
  4. roll into a master budget the amounts of media and channel usage you need to accomplish your goals.

We bet this approach saves you money and improves results. Ford saved 90% of its typical launch budget and generated 50% awareness in six months among target customers by using bloggers instead of TV to publicize its new Fiesta.

US Interactive Marketing Forecast, 2011 To 2016, VanBoskirk August 24, 2011