Digital marketing and advertising are experiencing explosive growth, both in the U.S. and globally. In this presentation of nine infographics, you can see what types of digital media are fighting for money and attention. But in keeping with our Business Impact theme of “technologies of persuasion,” we also zoom in on the psychology that drives consumers. After all, marketing and advertising dollars are well spent only when they prompt consumers to click or purchase–or at least trigger positive brand attributes such as trust.
Charts by Mark McKie
Spending Is Surging for Online Advertising in the U.S.
Spending by Ad Format 2005-2014: Search advertising, such as Google’s AdWords, should continue to win a major share of spending, but video ads are also showing strong growth, and rich media technologies are giving new life to banner ads.
Data: Internet Advertising Bureau
Globally, Growth in Online Advertising Is Also Strong
The Web Worldwide: The Internet Advertising Bureau projects double-digit growth in spending through 2014, when global revenue should approach $100 billion.
Impressions on Social Networks Lead the Top 10 Types of Display Ads
Millions of Eyeballs: Display advertising is often measured in terms of total “impressions” delivered to viewers. ComScore data shows social sites such as Facebook dominating the top ten online display categories, followed by portals such as Yahoo, then ads on entertainment sites.
Social Networks Are the Cheapest Ad Buy, with CPM Rates Below a Dollar
Ad Costs Vary Widely: Ad space is typically sold using CPM, the cost per thousand viewers (M being the Roman numeral for thousand). With a CPM averaging $7, newspaper websites are the most expensive way to reach 1,000 people with an online display ad. Some media outlets can charge higher CPM rates because of the higher quality of their content or their more favorable audience demographics.
Data: Internet Advertising Bureau
Yet Social Networks Tend to Be Able to Create an Environment of Trust
Who do you trust? When it comes to influencing purchase decisions, a survey of U.S. Internet users shows that direct recommendations from family and friends are the top ways it happens. Good contacts on social networks (which could include family and friends) also rank highly. Least trusted are politicians and celebrities, at least when presented as generic categories. Individual famous people, of course, might rank higher.
Scale: 1 = Do not trust; 5 = highly trusted
Data: Lightspeed Research/eMarketer
Western Europeans Are the Least Trusting of Brands on Social Networks
Who Is the Most Gullible? In a worldwide survey, social-network users were asked whether they trust brand messaging “a lot” or “a little” or whether they are “neutral.” While Latin American users expressed the highest trust rating, Western Europeans expressed the most distrust. Asians expressed the most neutral position.
Data: Insight Consulting. Note: Numbers may not add up to 100% due to rounding.
Discounts Drive Brand Fandom on Facebook
(What is the primary reason you “like” a brand page?)
I Want a Coupon: In a survey of Facebook users 18 and over, discounts and coupons are the top primary reason that consumer “like” or become fans of brands on the social network. The promise of community participation ranks low.
Data: Chadwick Martin & Bailey & iModerate Research Technologies/eMarketer. Note: numbers add up to more than 100% due to rounding
Globally, Online Will Be a Bigger Piece of the Total Media Pie
Conquering the World: While online advertising accounted for about 12 percent of total worldwide media spending last year, that share is projected to grow to more than 17 percent by 2014.
Note: Online ads include display, search, rich media, video, classifieds, sponsorships, lead generation, and e-mail. Does not include mobile ads. Total media includes print, radio, television, yellow pages, direct mail, and outdoor.
Even as Growth Surges Everywhere, Asia Will Outpace the World
Look to the East: Even as online advertising in North America and Western Europe experiences strong growth between now and 2014, other areas of the world are projected to grow even faster, with Asia projected to grow the most.
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