US travel industry on the leading edge of digital ad spending growth
According to eMarketer’s digital ad spending forecast, which encompasses both online and mobile advertising, travel advertisers will dedicate $4.7 billion to digital in 2016, nearly double the $2.4 billion they spent in 2011.
This growth is underpinned by the natural influx of new advertisers coming to the digital marketplace and increasing their spend over time, as well as established digital advertisers focusing on emerging channels. Advertiser trends, newer online ad formats and mobile advertising in general are collectively driving rapid growth through 2014. By 2015, year-over-year growth for digital travel advertising will continue, but it will begin to show signs of maturation, dipping into the high single-digit percentages.
At present, online marketers in the display, rich media and video advertising space can hardly keep track of advancements in targeting and technology, let alone the seemingly endless parade of new ad networks and exchanges.
One of the latest technologies to test for online advertisers hoping to streamline their ad inventory buying and bidding process is real-time bidding. For networks and publishers, real-time bidding can aid in filling additional site inventory and gaining access to new brands and advertisers.
February 2011 findings from DIGIDAY and Google suggest real-time bidding has passed the initial test. Among marketers and agencies who have already used real-time bidding, more than 90% will continue to spend at least some budget this year on real-time bidding, indicating those who have allocated preliminary budget will continue to maintain, if not increase, their spend.
Econsultancy’s Marketing Budgets 2011 Report tells a familiar story of increasing digital marketing budgets, but a much more nuanced picture is emerging beyond the usual mantra that digital budgets are increasing at the expense of ‘traditional’ marketing.
The findings also challenge the orthodox view that digital is perceived as more measurable than offline.
Sponsored by SAS, our survey-based research about marketing budgets is an encouraging bellwether for the digital industry with almost three-quarters (72%) of companies saying that, overall, digital budgets are increasing this year.
The majority of around 200 mainly UK (client-side) company respondents said their organisations are planning to increase their spending across pretty much the full range of digital marketing channels during 2011.
When asked, “How do I make my website better?” the answer is clear: “It depends. Better at what?”
When asked, “What should I be measuring on my website?” the answer is always, “It depends. What are you trying to accomplish?”
In both cases, having clear goals is the key to success.
But when asked, “How much should we spend on measurement?” I do not waffle. The answer is 20 percent of your marketing budget. And then I wait until they stop gaping at me like a grouper, eyes and mouth open wide.