As technology improves, budgets tighten and costs rise, how will digital marketing fare in this new ‘age of austerity’? Liane Dietrich, MD, LinkShare UK, takes a look at the key trends all digital marketers should plan ahead for in 2011.
There’s no denying that it’s been another turbulent year for British businesses. Public spending cuts coupled with preparations for the VAT hike have divided opinion on how the economy will fare in 2011. And with economic uncertainty remaining firmly on the news agenda, it’s not surprising that consumers have been keeping a watchful eye over their finances. But, it’s not all doom and gloom, so as we enter the New Year we wanted share our thoughts on why the marketing industry is set to prosper in the 12 months ahead.
The rise of digital marketing
At the recent ad:tech trade show, we conducted an industry survey to find out what marketers have planned for 2011 as well as their predictions for the outlook of commerce as a whole. The results were particularly encouraging, most notably because over two thirds of respondents (68 per cent) said they expect digital marketing budgets to rise next year. Only 18 per cent thought budgets would be cut as a result of limited resources and just 7 per cent predicted that a lack of funds would cause their company’s creativity to be stunted.
Meanwhile, to address the extra tax costs that companies will face, we found that 30 per cent of marketers are intending to increase their focus on targeted campaigns rather than mass marketing techniques. A fifth reported that they are planning to streamline processes to drive efficiency savings, while 18 per cent per cent anticipate 2011 will bring a greater emphasis on measurement and ROI.
The year of video advertising
Almost a third (30 per cent) of marketers believe that video advertising will be the most heavily invested in marketing tools next year. We’ve seen a remarkable shift in the way video online is being taken up by consumers and it is only natural this interest and engagement will fuel advertising spend. Although the use of video in marketing and advertising is nothing new, the results from our survey mirror what we have been hearing from our customers this year and suggest that video is set to become firmly integrated into the digital marketer’s tool kit.
In the same survey we found that ads on personal social networks will continue to form a fundamental part of digital marketing strategies in 2011, with 28 per cent of respondents planning to invest more heavily in the channel. Vouchers, promotions and special offers received 17 per cent of the vote, followed by interactive ad banners at 7 per cent and sponsored search engine links at just 6 per cent.
A lot to look forward to
So what does 2011 have in store for online marketing? First of all, it will certainly become more integrated with other marketing channels than it has been before. Consumers are becoming more open to being marketed to and many have a desire to become more involved in the process. For all its audiences, whether it is those planning, buying or even on the receiving end of its campaigns, it will be more transparent and easier to use than it has been in the past.
Despite the downside of 2010’s challenging economic environment, it has provided the perfect platform for online and affiliate marketing to prove its value and flexibility in giving marketers the opportunity to reach consumers in a more targeted and measurable fashion. Those companies who align their marketing campaigns and innovate their approach in reaching their consumers stand to prosper both from brand awareness and an increase in online sales in 2011.
By Liane Dietrich
Managing Director
LinkShare UK
www.linkshare.com
