Report: Marketers are spending more on digital vs. traditional tactics

As brand campaigns and strategies increasingly move to online platforms, the budgets allotted to these tactics is growing. A recent study sheds light.


Digital marketing revenues are expected to outpace traditional ads by 2018, according to new research from BIA/Kelsey.

The group’s US Local Advertising Forecast 2017 reports that mobile advertising for local markets in particular will jump from $44.2 billion in 2016 to $50.2 billion in 2017.

Traditional advertising in local markets is expected to drop from $101.1 billion in 2016 to $98.6 billion next year.

“A large part of that is because of a decline in revenue going to print media, including newspapers, magazines and direct mail,” Mark Fratrik, senior VP-chief economist at BIA/Kelsey, told Advertising Age.

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In a statement, Fratrik attributed the boost to “an improving US economy, increased spending by national brands in local media channels, extraordinary growth in mobile and social advertising, and the continued expansion and selection of online/digital advertising platforms.”

Another report that revealed data around Facebook spending supports the BIA/Kelsey study.

Marketing tech groups Kenshoo and Merkle released data recently that suggests that investment in Facebook marketing continues to rapidly grow.

Facebook ad spending increased 14 percent in the third quarter year-over-year, according to Kenshoo. The company attributes that to dynamic product ads, which accounted for 42 percent of all ad clicks. The amount of money spent on video ads increased 155 percent year over year, and the amount spent on mobile marketing jumped 61 percent in that time frame.

Merkle’s third quarter report revealed an overall spending increase of 63 percent year over year.

Both reports found falling costs per click and rising cost per thousand impressions.

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