Spending on marketing and advertising will grow 4.7 percent this year, reaching $473 billion—and digital now represents nearly half of all spending, rising 12.5 percent to $228 billion, equaling the combined spend of print ($96 billion), TV/radio/cinema ($88 billion) and events ($45 billion), according to media research and advisory firm Outsell…
Spending on marketing and advertising will grow 4.7 percent this year, reaching $473 billion—and digital now represents nearly half of all spending, rising 12.5 percent to $228 billion, equaling the combined spend of print ($96 billion), TV/radio/cinema ($88 billion) and events ($45 billion), according to media research and advisory firm Outsell, which recently released results of its 11th annual Advertising and Marketing Study. The study surveyed over 1,500 U.S. marketers to provide insight on spending across 36 categories, offering a comprehensive view into these marketers’ spending patterns and challenges.
According to Outsell’s Annual Advertising and Marketing Study 2016, events represent the only other positive growth category at 2.2 percent, and remain a key tactic for marketers’ brand building and lead generation activities. Within digital, mobile will outpace all other categories in terms of growth this year, up 38 percent to $23 billion.
The research also points to increased marketer focus on customer experience optimization, personalization, and creative and content capabilities to ***ist with cross-channel campaign efforts. Despite the strong march to digital, CMOs report that top pain points lie in dealing with media companies, vendors and agencies who push products rather than solutions to address their needs. Millennial marketers struggle to apply advanced analytics on top of a growing tsunami of data.
“CMOs continue to drown in data as they accelerate their advertising and marketing efforts and demand cross-channel attribution capabilities,” said Randy Giusto, Outsell’s vice president and lead analyst for Media, Advertising and Marketing Research, in a news release. “New forms of mobile, video and social advertising present new forms of creative and content, as well as new data streams with which to analyze and act upon on.”
Among other study findings:
- Marketers continue to invest most in their own websites and in TV advertising, though search, mobile and social spending will make the biggest gains this year.
- B2C marketers rank their own websites, events, social engagement, e-mail marketing, and search and social advertising as most effective for brand building.
- B2B marketers rank their own websites, events, social engagement, and custom print solutions as best for lead generation.
- Facebook scores strong in strengthening B2C brands, while consumer-facing marketers rate Facebook, YouTube and Twitter highest in mobile ad effectiveness. LinkedIn leads among B2B marketers.
- Millennial marketers will drive higher levels of mobile advertising through programmatic means over the next three years, and shift more dollars from display, search, and broadcast TV budgets than older marketers.
“New ad formats and the increasing use of video, as well as the emergence of big social brands as news and information curation and distribution hubs offers new choices to advertisers and marketers in 2016. All things considered, it’s all about attribution, connecting an actual sale back to the marketing touchpoints along the customer journey to justify the spend,” Giusto said.
Outsell conducted this year’s survey in December 2015. The firm segmented results by marketer experience, to join other segmentation efforts including by age of marketer, size of company, and by B2B or B2C focus. Outsell will also publish B2B and B2C reports on the behaviors and spending expectations of marketers in these focus areas, segmented by marker’s age, industry and company size.
Source: PR Neswire; edited by Richard Carufel
Click here to view full article