According to a recently released report from Forrester Research detailing media spend from 2016-2021, digital media spending in the US is predicted to go $70 billion in 2016 to almost $120 billion in 2021. However, year-over-year spending in digital marketing is expected to slow down as marketers will emphasize quality over quantity.
Some key points:
- Digital marketing component such as paid search, display, social media, online video and email marketing, will make up to about 46% of all advertising by 2021 from about 36% in 2016.
- Digital marketing is no longer considered experimental but as mature investments that come with goals setting and measurement practices as well as waste combating. Amidst this spending growth, there is also a shift to increasing investments in data, technology and particularly, improving customer experience such as store layouts, mobile apps and marketing technology that make personalization.
- Millennial consumers will be in a high spend life stage as they establish careers, homes and families, boosting their collective spending to over $600 billion annually, according to a report from Accenture.
- Spending on online video advertising has grown 114% since 2014 as as advertisers like its reach and targetability. Online video advertising allows brand advertisers, to extends their existing reach with marginal incremental costs while smaller advertisers can achieve a TV-quality advertising presence with less cost.