While the new year settles in, it’s an apt time for brand marketers and agencies to look back at 2016 and project ahead into 2017.
As we recently noted, marketing budgets in 2017 are expected to climb by 12% according to Gartner’s new CMO Spend Survey. But that wasn’t the only insight revealed by the report; just as interesting is the question of where that all extra money is going.
The answer might surprise you: much of the new budget is going to digital advertising. The data suggests “that reports of advertising’s demise may be overstated,” writes Gartner. In 2016, digital ad spend was the third-largest expense category for marketers out of a potential 14 categories; only web and digital commerce spending eclipsed digital ad spend last year.
Now in 2017, digital ad spend looks ready to make another jump. An incredible 65% of marketers expect digital advertising spending to increase this year—the largest margin across any expense category.
Why Digital Ad Spend Is Increasing—And What It Means
While some prognosticators foresaw a decline in digital ad spend, reality has other plans. Of course, the upset begs the question: why is digital ad spend growing when so many predicted exactly the opposite?
Gartner offers three compelling reasons:
- The continual shift from offline media spending to digital channels is occurring more consistently and rapidly than projected.
- Companies are scorning the rosy hopes of organic social engagement in favor of more cost-effective paid social initiatives.
- Video advertising is becoming more and more important—and it’s also one of the most expensive advertising forms.
What does all this mean for brand marketers and agencies? While it’s good news for marketers—who will have more resources to execute ideas and reach ambitious goals—it’s absolutely fantastic news for agencies. As the trusted service providers for most digital advertising done by enterprise companies, agencies stand to win more business and earn greater revenue thanks to ballooning ad budgets.
How to Make the Most of Swelling Ad Spend
A bigger digital advertising budget does not mean more room to make mistakes or money to throw around frivolously. On the contrary, it means marketers and agencies are entrusted with more responsibility—and accountability—as they take on a greater portion of the company’s purse.
That means you need to make smarter decisions about who you’re serving ads to and whether the content is suited to your audience. That’s where Resonate comes in.
We have the only platform that can target over 90% of the U.S. online adult population based on their attitudes, values, product preferences, and psychological drivers. Gleaned from our proprietary survey data—the largest consumer survey in the U.S., with over 200,000 active respondents—we gather over 7,000 human attributes. These insights are then enriched by contextual analysis of online behavior and combined with more traditional demographic and psychographic data to give you a complete view of your customers and prospects.
While our platform is incredibly intuitive, most agency clients ultimately opt for our managed media services, in which we secure media placements with our singular targeting capabilities. Pairing unparalleled consumer data with unrivaled client service, our experienced team collaborates with yours: together, we apply our proven process to help build, launch, and optimize successful digital advertising campaigns across all activation channels.
From the earliest strategy planning stages through to execution and ongoing optimization, Resonate works hand-in-hand with you to drive display, video, social, and native advertising campaigns designed to connect with consumers’ values, motivations, attitudes, and preferences on an individual level.
Looking to learn more and explore getting started? Contact Resonate today to see how our platform and managed media services can work for your brand or agency.