Spending on digital marketing grew by 44
per cent last year in the United States and Britain to 52 billion
dollars, a study has found.
per cent last year in the United States and Britain to 52 billion
dollars, a study has found.
It estimated that global outlays on such tactics are approaching 100 billion dollars.
In contrast to placing online ads through
intermediaries, digital-marketing, or “martech”, it has appeal of
enabling brands to target consumers directly via social media,
search-engine-optimization or voice-activated-assistants,
such as Amazon’s Alexa.
intermediaries, digital-marketing, or “martech”, it has appeal of
enabling brands to target consumers directly via social media,
search-engine-optimization or voice-activated-assistants,
such as Amazon’s Alexa.
The growth in part reflects a desire to
take functions in house following high-profile complaints by consumer
giants Procter & Gamble and Unilever
over fraud in online advertising.
take functions in house following high-profile complaints by consumer
giants Procter & Gamble and Unilever
over fraud in online advertising.
The issue of ‘brand safety’, which can be
jeopardized when ads appear next to unsuitable online content, has also
frustrated marketers and encouraged them to seek greater control over
how they target audiences.
jeopardized when ads appear next to unsuitable online content, has also
frustrated marketers and encouraged them to seek greater control over
how they target audiences.
“Clearly marketers are seeking to build
in-house strength and are set to spend more on martech to remain
competitive,” said study author Damian Ryan, a partner at UK accountancy
firm Moore Stephens.
in-house strength and are set to spend more on martech to remain
competitive,” said study author Damian Ryan, a partner at UK accountancy
firm Moore Stephens.
“Our research finds that this budget is
coming from media spend and will have a resounding impact on the value
of media-centric agencies,” he added.
coming from media spend and will have a resounding impact on the value
of media-centric agencies,” he added.
He referref to traditional ad agencies that are struggling to adapt to the digital era.
The Moore Stephens survey, conducted with
advertising and media consultancy WARC, covered 800 companies in North
America, the Asia-Pacific and Europe.
advertising and media consultancy WARC, covered 800 companies in North
America, the Asia-Pacific and Europe.
It found that brands in Britain and North America spent 23 per cent of their budgets on martech, up from 16 per cent a year ago.
And 63 per cent of U.S. technology budgets were spent in-house, compared with 44 per cent last year.
Tough European data protection rules that
took effect in May, as well as concerns over the data practices of
search giant Google and social network Facebook.
took effect in May, as well as concerns over the data practices of
search giant Google and social network Facebook.
These are the two biggest online advertising platforms.
The rules have led several players in the ad industry to merge or retrench.
“We’re at the beginning of the shakeout,” Ryan told the media in an interview. (Reuters)
