Billions More in Digital Ad Spending Heading Down the Toilet

0 Comments

Jun

21

2010

by MrOptimization in Numbers

Double-Digit Digital Ad Spend Increases in 2010

eMarketer just released its US Ad Spending: How Big Is the Bounceback? report.

The good news includes:

• Online ad spending will grow 10.8% in 2010 to $25.1 billion
• The growth in digital ad spend is much larger than earlier estimates, reversing previous declines

Hi! Bye!

Sure, improved digital ad spending is a great sign for the overall economy and our slice of it.

However, there are two unfortunate facts that will chase away the benefits most marketers could have gained from their increased ad budgets:

• Because they serve the wrong content and experiences to their visitors, the average site's conversion rate remains under 5%
• Though the buzz du jour is "off-site," marketers will always be driving most of those visitors to the same poor-performing destinations

Your Diversified Digital Toilets

Whether you're a brand, transaction or combo digital marketer, digital ad channels across the funnel keep improving their ability to attract more targeted audiences.

Then the most important part —that, ironically, you fully control — drives most of those visitors away.

He'll Take Your Money Regardless

The eMarketer report also says:

• 58.5 percent of U.S. online ad spending in 2010 will go to Google, Yahoo, Microsoft and AOL
• 49.3 percent of U.S. online ad spending goes to search
• A third of the predicted new spend will go to online video advertising

Guess who owns the biggest search and video ad platforms?

Hmmm. What to do with all of their money?
Maybe I'll buy a planet! Wait, I already own one of those.

Yo CFO! We're Wasting more than Ever!

You could have two different types of conversations with the CFO or marketing accountability committee.

• "Thanks for the digital ad budget increase!

  We can't wait to throw most of that new money down the toilet!

  Yep. We'll be paying more to drive visitors to our sub-optimal web properties where they'll just get fed up and leave.

  And the best part is we've known our sites drive away most of our visitors for years!

  Would you pass me a scone?"

or you could have this conversation:

• "We will use a small percentage of that budget to implement a Multivariate Testing and Targeting program right away.

  You see, by increasing our digital optimization maturity level we'll be making our content and digital experiences smarter and better suited to each visitor.

  And the best part is, this new Multivariate Testing and Targeting program will keep improving our content and experiences so our returns will get better over time!

  Promotion? Me?"

Can you guess which conversation MrOptimization recommends?