2010 Internet Marketing Forecast
2009 was, by most accounts, a year of severe business challenges and adjustments. Through that however have come significant shifts in business and consumer preferences, practices and technology that will continue to impact marketing trends in 2010.
Perhaps the most impactful shift was a newfound emphasis on reducing costs in an effort to maintain ROI goals in a tough year to grow revenue. This sparked considerable growth in the digital marketing realm, mainly in social media and search, as marketers looked towards measureable ways to increase customer acquisition and brand awareness. Because of this, the digital forecast for 2010 is looking up as companies like eMarketer are anticipating online ad spending will see a 5.5% increase in 2010 (MediaWeek).
So, what exactly are some noteworthy 2010 forecasted trends by channel?
Search Engine Marketing
With the current emphasis on measureable, cost-effective means of direct marketing, Search Engine Marketing (SEM) is sure to maintain its dominant hold on Internet marketing. J.P. Morgan’s “2010 Internet Industry Outlook” forecasts that search spend in 2010 will leap to as much as $16.5 billion this year, up about 13 % from 2009 (B2B Magazine). Between Microsoft and Yahoo!’s partnership, Google announcing plans to incorporate Twitter and Facebook updates in search results and new custom search features in Google, 2010 is sure to bring big changes in SEM.
Social Media
Social media continues to steal the Internet marketing stage, becoming more of a trusted, low-cost, resource for branding, reputation management and, in some cases, conversion generation. Though the channel presents its share of challenges, mainly in its limitations in measurability, its popularity in 09’ has paved the way for social media to grow drastically in the coming year. In 2010, look for technological advancements that will accelerate the amount of marketing dollars allocated to channel as companies become more comfortable with the medium and their ability to measure success metrics.
Additionally, because of the increased use of social networks and the constant consumer brand conversations within them, user privacy will become an increasing priority for companies in 2010 and beyond. As AdAge reports, “this will naturally lead to a land grab where parties join forces e.g. a market research company and a social network provider,” as well as lead to more regulated/standard privacy policies which will further change the social media landscape.
Display Advertising
Display advertising is projected to increase 10.5% in 2010 per J.P. Morgan’s “2010 Internet Industry Outlook” (B2B Magazine). With so many technologies hitting the market—particularly mobile devices—the opportunity and need for display advertising is quickly growing. B2B Magazine reports, “display ad sales in the U.S. will reach $8.3 billion this year, spurred by 45% mobile ad growth, according to the [J.P. Morgan] report. Mobile ad expenditures are forecast to grow to $3.8 billion this year, with most of that growth ($3.2 billion) coming from SMS text-message advertising. JP Morgan predicted $253 million will be spent on mobile display and $31 million on mobile search.”
Internet Marketing and the Regulatory Environment
Internet marketing as a whole will likely see changes in regards to the current regulatory environment. In 2010, the Federal Trade Commission (FTC) is scheduled to host three roundtables to discuss how technology and the business practices used to collect and analyze the data provided from it (e.g. cookie use for behavioral marketing) impact consumer privacy. Specific topics listed on the agenda include improving privacy policies for mobile, cloud computing and social media. Additionally, the roundtables will examine behavioral targeting, information-sharing and the effectiveness of the current legal and regulatory structure surrounding them.
Overall, the last decade has hugely impacted digital marketing and it will constantly evolve in 2010 and beyond. As businesses continue to concentrate their focus on media channels that will be cost-effective, measurable and generate revenue; Internet marketing will continue to grow and increase its hold on marketing dollars. Though the economic downturn of 2009 shook many of our foundations, it has paved the way for groundbreaking technological digital changes and growth in the coming years and we welcome the great things to come!
