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Digital Ad Spend to Climb 14%, Social Media 35%

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US direct and digital advertising expenditures are forecast to reach $163.9 billion in 2011, up 6.2% from 2010 levels, according to a report from the Winterberry Group. Of that total, digital spending is expected to reach $31.6 billion, up 14.0% from the previous year.

Within digital, social media ad spend is expected to increase more than 35%.

Among other high-growth areas, insert-media spending is forecast to increase 9.1% in 2011, to $0.9 billion, followed by direct-response broadcast, projected to grow 7.6%, to $25.4 billion.

Direct mail spending is expected to reach $47.8 billion in 2011, up 5.8%, driven by acquisition-mail increases. The category, which underwent a substantial market correction in 2009 (down 16.7% year over year), rebounded slightly in 2010, reaching $45.2 billion, up 3.1%.


Below, other findings from Winterberry's report titled Outlook 2011: What to Expect in Direct & Digital Marketing.

Digital Marketing: 2010 Stats

Some $154.4 billion was spent on direct and digital advertising in 2010, up 2.7% over 2009 levels. Of that amount, digital spending accounted for $27.7 billion, driven by search and targeted display advertising:

  • Search spending accounted for 56.3% of digital spending in 2010, reaching $15.6 billion, up 6.4% from 2009 levels.
  • Display accounted for 33.6% of digital in 2010, reaching $9.3 billion, up 10.7%.
  • Email accounted for 5.1% of digital, reaching $1.4 billion, up 8.6%.
  • Mobile accounted for 3.2% of digital, reaching $0.9 billion in spending, up 30.8%.
  • Social apps and widgets, and listening platforms, together accounted for 1.4% of digital spending, reaching $0.4 billion, up 5.4%.
  • Lead generation spending accounted for 0.7% of digital, reaching $0.2 billion, up 5.5%.

Looking for great digital marketing data? MarketingProfs reviewed hundreds of research sources to create our most recent Digital Marketing Factbook (May 2010), a 296-page compilation of data and 254 charts, covering email marketing, social media, search engine marketing, e-commerce, and mobile marketing. Also check out The State of Social Media Marketing, a 240-page original research report from MarketingProfs.


Digital Outlook for 2011

Search spending is expected to account for most (56%) of digital spending in 2011, reaching $17.7 billion, up 13% from 2010 levels.

In other digital spending for 2011:

  • Display is forecast to comprise a 13.0% share, reaching $10.5 billion, up 13.0% from 2010 levels, driven by audience targeting and online video adoption.
  • Emerging social media spending (display and apps) is forecast to reach $1.6 billion, up 35.4%, accounting for 5.1% of digital ad spending.
  • Mobile is forecast to reach $1.2 billion, up 30.8%.
  • Email is projected to account for 5.1% of digital, reaching $1.6 billion in 2011, up 18.1%.

About the data: Findings are from Winterberry's report titled Outlook 2011: What to Expect in Direct & Digital Marketing, based on Winterberry Group analysis issued in January 2011.


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