Digital marketing spend hits new high

null

Spending in the digital marketing industry is approaching $100 billion, fast.

Reuters reported on a newly released Moore Stephens survey which says spending on digital marketing grew by 44 per cent last year in the United States and Britain to hit a total of $52 billion.

Businesses are less inclined towards placing online ads through intermediaries, and more inclined towards what’s called MarTech. They seem to prefer targeting consumers directly, through social media, search engine optimisation and voice-activated assistants.

Brands in Great Britain and North America spend 23 per cent of their budgets on MarTech, it was said, which represents a 16 per cent jump, compared to a year ago. Almost two thirds (63 per cent) of US tech budgets were spent in-house, compared to 44 per cent last year.

“Clearly marketers are seeking to build in-house strength and are set to spend more on martech to remain competitive,” said study author Damian Ryan, a partner at UK accountancy firm Moore Stephens.

“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 added, referring to traditional ad agencies that are struggling to adapt to the digital era.

The survey was done on 800 companies in North America, the Asia-Pacific and Europe, and was conducted by Moore Stephens and WARC.

Image Credit: SFIO CRACHO / Shutterstock