Saw this article on AdAge and felt like sharing.
According to Forrester, digital advertising spend in the US is set to double in the next 5 years.
Digital, which will be about 12% of overall advertising spend in 2009, is likely to grow to about 21% in five years. Along the way overall advertising budgets won’t grow much.
So basically, ad budgets will remain relatively flat but the digital spend as a dollar value will double.
Forrester are predicting that mobile will grow by 400%, social media over 400%, email marketing by around 80%, display by over 100% and search by the same amount.
Now, who knows whether these predictions will come true. Most predictions generally don’t pan out as planned as the industry is moving so quickly no one can really predict where it will be in a few years let alone 5.
But one thing we do know is digial channels are becoming more important and the intrigue around them seems to have grown in 09. Undoubtedly moving forward – warranted or not – digital will command more spend.
And with more spend will come more scrutiny and hopefully more advancement around measurement etc.
So my question is this – do we have the infrastructure in place across these digital channels to achieve these projections?
I’d argue probably not.
To grow at 100% over 5 years you generally need to have the structure in place to resource this?
Do we have digital marketers with experience? Do we have agency professionals with the experience and skills required? Are publishers resourced in the areas of sales and commercial development? Are there enough digital skilled people in a client capacity?
Do we have metrics that we can use to rationalise increased investment? Do we have standards and process around trafficking, measurement, commercial terms that can cater for this?
Do we have the quality of case studies, best practice, innovators etc that can ensure digital can reach the 100% growth over 5 years without under delivering?
Do we have the quality of content required that will attract the brand advertiser categories digital needs to really boom?
Do we have solid rationale around pricing?
Are we offering a service level as good if not better than TV, radio, outdoor etc? If not, what are we doing to change this?
My feeling is right now the culture is around revenue and extraction not setting up foundations for the future. This is across all areas and it makes sense as everyone needs to cover costs. But in the next 12 months this surely needs to shift and the approach needs to be around developing rock solid pillars that ensure we can handle the next 5 or so years.