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$55B in Interactive Marketing Spend in 2014

July 23, 2009

Interactive marketing spend is expected to reach nearly $25.6 billion in 2009—and nearly $55.0 billion in 2014, when it will account for 21% of all marketing spend, up from 12% in 2009—according to Forrester's projections in its recent report, "US Interactive Marketing Forecast, 2009 To 2014."

Marketers will be shifting budgets away from traditional and toward interactive media—search, online display ads, email, social media, and mobile marketing—bringing about a decline in overall advertising budgets during the forecast period, Forrester said.

That trend is also a reflection of marketers' growing recognition of where consumers are spending their time, according to the report: "Marketers are getting better at balancing channel investments with consumer media time."

Though people typically spend equal amounts of their media time—34-35% in 2009—with television and the internet (including at work), TV ad spending is about four times that of internet ad spending (31% vs. 7%).

Interactive-Marketing Forecast

Search marketing spend, which at a projected $15.4 billion in 2009 accounts for the largest portion—60%—of interactive spending, will grow at a compound annual growth rate (CAGR) of 15%, reaching $31.6 in 2014, according to the research.

Display advertising, expected to constitute nearly 31% of interactive marketing spend in 2009, will more than double during the forecast period, reaching a projected $16.9 billion in 2014, holding onto its nearly 31% share of interactive spend.

Social media, accounting for just $716 million of interactive spend in 2009, will grow significantly, at a 34% CAGR, reaching more than 3.14 billion in 2014—supplanting email as the third-largest interactive marketing channel in terms of spending.

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