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Interactive Marketing to Hit $55 Billion by 2014

15 Jul, 2009 Response This Week

CAMBRIDGE, Mass. – According to a recent forecast from Forrester Research, interactive marketing in the United States will reach $55 billion by 2014 and will grow from 12 percent of overall ad spending to 21 percent.

The Five-Year Interactive Marketing Forecast Report looked at overall interactive spending and found in 2009 that more than half can be attributed to search marketing. And search marketing will only grow, rising from $5.4 billion in 2009 to $31.6 billion in 2014 (a compound annual growth rate of 15 percent), making it the largest portion of interactive dollars.

Looking at advertising budgets overall, Forrester predicts a decline as money moves from traditional media to less expensive, more measurable interactive tools.

Smart marketers will “allocate unused advertising dollars into investments like innovation, research, customer service, customer experiences, and marketing-specific technology and IT staff, in order to further marketing’s strategic influence within their companies,” says Shar VanBoskirk, vice president and analyst at Forrester.

The largest expected growth in digital marketing will be in the realms of social media and mobile. Social media spending is expected to climb from $716 million in 2009 to $3.1 billion in 2014, while mobile marketing will grow from $391 million to $1.3 billion in the same timeframe. The least amount of growth will appear in the E-mail marketing arena, which will rise from $1.2 billion to $2.1 billion in five years.

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