By 2015, small and medium sized businesses (SMBs) are expected to spend nearly $17 billion on digital advertising. This number represents nearly 70% of SMBs totally marketing budgets. The remaining 30% of their advertising budgets will be directed to traditional advertising media outlets. This will represent a significant decrease from the 52% of budgets spent on traditional advertising in 2010.
The 70% that will be allocated to digital channels will breakdown as follows:
- Online/Digital: Includes mobile, social, online directories, display, and digital outdoor
- Performance-based Commerce: Includes pay-per-click, deals, and couponing
- Customer Retention Solutions: Includes email reputation and presence management, websites, social marketing, and calendar/appointment-setting
During this forecast period, spending in traditional advertising outlets is expected to be flat with $10.8 billion spent in 2010 and $12.1 billion to be spent in 2015. However, overall spending on media, marketing and business solutions will grow dramatically from $22.4 billion in 2010 to $40.2 billion in 2015.
BIA/Kelsey also expects spending on performance-based commerce and transaction platforms to increase to $4.6 billion in 2015 up from $1.7 billion in 2010. Customer retention spending is also expected to increase. 2010 saw customer retention spending of $3.5 billion; this number should rise to $6.9 in 2015.
With so much spending expecting to shift to online marketing outlets, where does your company project their marketing plans for the future? If you are considering online marketing and don’t know where to turn or how to get started, talk to the experts at Qiigo. Let us show you how easy it can be to achieve internet marketing success.