NEWS30 January 2017

Digital marketing nears $120bn by 2021 in US

News North America

US – Forrester has predicted that spend on search marketing, display advertising, online video and email marketing will reach almost $119 billion by 2021.

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Digital marketing will account for 46% of all advertising in five years according to the research company as its value grows by 11% (compound annual growth) between new and 2021.

The report states that search will lose share to display and social advertising as quality becomes more important than quantity.

Shar VanBoskirk, vice-president and principal analyst at Forester said in a blog in Forbes: “This is not the experimental ‘spend on anything to see what works’ investment we saw between 2008 and 2012. Marketers are more mature now with capable measurement practices. They will spend judiciously on just what works for their goals. And many are prioritising non-working investments in data, technology and customer experience.”

She also pointed to how millennial buying power was now behind increased spend. “Millennials have settled into a high-spending life stage as they establish careers, home and families. This is now the largest living generation; it spends collectively $600bn a year. Brands will grow digital investment to connect with these digital natives.”