Interactive, social media advertising to reach $55 billion

E-mail Print

New figures from Forrester Research show the US interactive advertising market is set to reach $55 billion over the next five years.

The forecast also shows that marketers will go from spending just 12% of total advertising budgets online to 21% of advertising budgets by 2014.

The search and display advertisements will be the leader of the pack, recording $31.5 billion and $16.9 billion in spending respectively by 2014. However, the majority of the growth is set to come from social media and advertising on mobiles.

Advertisers will spend an estimated $716 million on social media advertising and marketing this year, but that will jump by a massive 34% to $3.1 billion in 2014.

Additionally, mobile advertising will grow by 27%, from $391 million this year to $1.2 billion in five years' time.

 

Read more on:

Comments (1)
walter
...
written by Walter Adamson, July 13, 2009
Because "social media" spending is often limited in people's current perception to advertising and marketing, I want to comment that the total spending on social media will be many times larger than this report states.

This is because social media not only embraces a new way of business for advertising and marketing, but also for PR, service, support, product development, business development, and potentially logistics and distribution. That is, think of social media as a service function which changes many if not most of a company's interactions with customers.

This does not mean that in total more money will have to be found. Funds from existing budgets will be diverted. The total spend, when added up across an organisation, will be much larger than "social media advertising", and it is trending up rapidly.

Walter Adamson, @g2m
http://www.socialmedia-academy.com.au

Write comment
You must be logged in to post a comment. Please register if you do not have an account yet.

busy
 
Expert advice from business women

FREE DOWNLOAD - Expert advice from business women

43 tips from successful business women on how to get to the very top of the business world, the barriers that hold women back and what they can learn from successful men on climbing the career ladder. Essential, practical reading for any ambitious business woman.

Register for the SmartCompany Newsletter and immediately receive 'Expert advice from business women'.

Free Daily Newsletter
SmartCompany Newsletter
Follow us:

WebfirmFree website healthcheck

Register to receive a free website healthcheck and eBook

Our Partners

 
Smartco

DIRECT LINKS

TOPICS

OUR PARTNERS

NETWORK PARTNERS

Popular on Partner sites: 2010 Federal Election | Book Reviews | Film Reviews | TV Show Reviews | Officeworks | business for sale | Fair Work Australia | 2010 public holidays

SmartCompany.com.au is Australia's leading website for SMEs featuring business news, business information and business blogs. SmartCompany's archive of news, feature articles, entrepreneur interviews and business webinars cover topics such as advertising and marketing, buying or selling a business, starting a business, growing a business, franchising, SEO, superannuation and tax.
Online Solution by Valegro

Download SmartCompany eBooks: Expert advice from business women | 101 tips for your business in 2010 | 25 tips to boost your sales | Finding, winning and keeping customers | 21 marketing tips | Business Plan | 25 tips from real entrepreneurs | 21 exporting tips | 10 tips for managing Gen Y