A Forrester Research, Inc. report released at the Forrester Consumer Forum in
Forrester extrapolated that over the next five years, spending on interactive marketing will grow at a 27% compound annual growth rate (CAGR) and its share of marketing budget will grow from 8% to 18% of total ad spending.
The majority of this projected growth will be distributed amongst search marketing (projected to grow to $25 billion) and display advertising (projected to reach $14 billion). Of special interest was Forrester’s prediction that spending on social media will grow to $6.9 billion over the next five years, which would surpass their projections for mobile marketing ($2.8 billion) and e-mail marketing ($4 billion). Another major area of growth will be in online video advertising, which Forrester projects could reach $7.1 billion by 2012.
Of course, predicting growth in online spending five-years in advance based on a survey of 350 online marketing professionals is probably not the most methodologically sound approach in the world. In other words, I wouldn’t mortgage the house to start investing in social media companies quite yet but at the same time I believe the survey results are a good indicator of the current perspective on the growing importance and potential of social media.


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