Interactive Marketers Lean on Search
(Mobile and social media are small—but getting bigger.)
Digital advertising has been the bright spot in many ad spending forecasts, and that trend is slated to continue.
In the "Five-Year Interactive Marketing Forecast Report," Forrester Research projects a 17% compound annual growth rate (CAGR) for US interactive marketing spending over the next five years, to nearly $55 billion in 2014.
As it grows, interactive marketing will represent an ever greater portion of US advertising spending. Pegged at 12% of the total in 2009, interactive ads will represent 21% of all Ad spending in 2014.
Though both starting from a small base, Forrester predicts social media and mobile marketing will grow fast. Social media marketing will experience a 34% CAGR, with mobile not far behind at 27%.
Search marketing makes up more than one-half of all interactive dollars, and will remain the biggest format through 2014. Search is expected to grow by a 15% compound annual rate.
According to eMarketer estimates which exclude spending on mobile and social media, search advertising also makes up a majority of UK online advertising spending. Search spending will climb slowly this year, at just under 5%, but 2012 will see a return to double-digit growth.

Turning to Europe as a whole, search dominates there, too.
In 2008, PricewaterhouseCoopers (PwC) and the Interactive Advertising Bureau Europe (IAB Europe) reported that search took in the bulk of online advertising revenues.

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