Web Display Ads Growing by 20% per Year

08/21/2008

Spending on interactive marketing is projected to increase by 25% per year through 2012 according to the most recent report from Forrester Research. In hard numbers, this equals $8.2 billion by the end of 2008.

Spending in the retail interactive marketing sector is only outpaced by travel, which accounts for about 40% of the projected spend in 2008.

According to the research giant, three critical factors account for this:

(i) Interactivity promotes spending by customers. Almost ninety percent (87%) of those who were asked said that interactive marketing works better than more traditional forms of marketing.

(ii) Expansion: Many online marketers are increasing and expanding their interactive marketing efforts. While basics like search and email are already in place, many marketers are underscoring this success by improving analytics and automatic processes, for example.

(iii) Experimenting: Many Internet marketers are experimenting with different online mediums like video and social media. Citing an example of this, Forrester estimates that spending on online video marketing is expected to grow to $2.3 billion by 2012 (up from $338 million this year).

Where Will the Online Marketing Dollars Be Spent?

Of the projected $8.2 billion that will be spent through the end of the year, projections are that almost $3 billion ($2.78 billion to be exact) will be spent on display ads.

Search engine marketing will take $3.63 billion of the pie and email marketing will round out the rest, taking in $1.25 billion.

To assess how their ad dollars are working for them, online marketing experts suggest that
e-tailers invest in web analytic tools to track consumer spending and other online behaviors.

For more insight visit Internet Marketing Services