Global annual spending on digital marketing is nearing the US$100 billion mark, according to a study, which estimated that such spending was up 44 percent last year in the US and Britain to US$52 billion.
“Clearly marketers are seeking to build in-house strength and are set to spend more on martech to remain competitive,” Reuters quoted study author Damian Ryan, a partner at UK accountancy firm Moore Stephens, as saying.
“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 said, referring 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.
It found that brands in Britain and North America spent 23 percent of their budgets on digital marketing, up from 16 percent a year ago, according to Reuters.
And 63 percent of US technology budgets were spent in-house, compared with 44 percent last year.
The emergence of platform companies that offer a one-stop shop for marketers is another trend to watch, Ryan told Reuters in an interview.
Meanwhile, a separate report by industry forecaster Zenith estimated that global advertising expenditure will reach US$581 billion at the end of 2018, with most of the growth coming from sponsored content in search engines and social media ads.
Zenith, owned by France’s Publicis, raised its forecast for global advertising spending growth to 4.5 percent from 4.1 percent and predicted two-thirds of that growth will come through paid search and social media ads.
Paid search will grow US$22 billion in 2018 whereas social media ad spending is expected to grow by US$28 billion, making it the largest contributor to expenditure growth, Zenith forecast, according to Reuters.
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