Rough Times Accelerate Investments in Digital Advertising

02/27/2009

Internet marketing has taken on a new meaning due to social media, the rapid changeover to digital technology, and the ailing economy. In a recent report, The Kelsey Group, LLC estimates that the amount of funding for interactive advertising will more than double from 9% in 2008 to 22.2% in 2013.

However, it is also predicted that money spent on advertising for print media outlets like magazines and newspapers, the Yellow Pages, direct mailings, and multimedia outlets like cable, standard television and radio will decrease from approximately $141 billion in 2008 to a little over $112 billion by 2013.

The trend in digital advertising and Internet marketing can be partially attributed to social networks like Facebook and MySpace, in addition to social forums, chat rooms, YouTube and other video sites, wikis, and blogs which have seized and taken over the net. These avenues allow for an Internet marketing blitz of digital advertising that is projected to be much more effective in securing clientele, thus increasing revenue. The youngest Internet users (14-19 years old) researched are being trained to conduct research, play games and shop online. When they come of age and acquire real purchasing power, the Internet will be their first source.

The struggling economy is only forcing this changeover to occur at a much faster rate than originally predicted. The numbers have shown that Internet marketing experts were originally shooting for an advertising switch to take place over the next decade, but the suffering economy is pushing these strategists to step up the pace for digital Internet marketing.

Included in the revenue predictions, in addition to the social media marketing maneuvers, are the Yellow Pages on the Internet, mobile ads, online classified ads, and email marketing. The Kelsey Group predicts that revenue from digital Internet marketing will increase from $14 billion in 2008 to $32.1 billion in 2013.

Neal Polachek, current CEO of the Kelsey group, believes that the current harsh recession and the softness in the economy will only accelerate this transition. A quick look at post-recession numbers for all traditional media will reveal that they’ve bounced back well ahead of inflation and GDP.

Internet marketing and revenue have continued to increase rapidly over the past years as more and more people have access to the Internet and they are becoming much more computer and online research savvy. Therefore, Polachek finds “the acceleration of the shift from traditional to digital media and Internet marketing surprising, rather than the shift.”

In past years the public relied on different media outlets to satisfy different needs and wants. Radio marketing was aimed at sales through promotions and television has always aimed to create awareness. Print media has always been geared towards retail. "The Internet can do all those things, and that's the fundamental shift," states Polachek. "It's not just another media. It's all media rolled into one. You can't say newspapers will be fine because it can do something no other media does. Not true."

For more insight visit Internet Marketing Services