For the first time in almost two years we are starting to see strong evidence that the economy is rebounding and a transformation has taken place in digital marketing. We may well remember 2011 as the Year of Opportunity that launched a decade of rapid growth in digital advertising. Every advertiser should make sure they are baking these opportunities into their 2011 plans:
Video Display Advertising
We are starting to see real innovation in the video display market that gives advertisers the advantages of traditional television but with the precision of search marketing. With the help of ad networks and offshore production facilities, advertisers can now launch an online video campaign for $100k and create greater target audience impact than the same budget spent in national cable. The industry may stop its efforts to develop addressable television at the local cable level since online video can do the same for less. Google estimates that the display marketplace will go from $2.5 billion to $50 billion in the next five years based on the advances in online video advertising.
Facebook – The New Wal-Mart
We will start to see the power of Facebook from an e-commerce perspective as the social network continues to rollout and enhance its ability to drive product and service transactions right from its site. Imagine having access to 500 million customers not just to send a message but to actually solicit for real business transactions. The retail marketplace may go through a revolution this year, not a smooth and simple evolution.
Social Marketing Profile Segmentation
People don’t want all of their “friends” in one bucket receiving the same messages and updates. Think about how people rarely want their work friends, college friends and family all at the same party. The same is true for consumers and their social networking behavior. They want to segment their friends and interests on-line just like they do in real life. There will be a flood of technical advances this year to address this issue which will allow advertisers to further engage consumers at a deeper and more meaningful level.
Mobile Ramp Up
The explosion of internet usage over mobile devices is an acceleration trend unlike ANYTHING we have ever seen in the U.S. It took less than four years for Apple to sell over 120MM+ mobile devices that have internet access (iPhone + iTouch + iPad). By comparison it took twice as many years for desktop internet usage to reach 60MM homes. Japan is looking like the prototype for U.S. smartphone predictions. Currently 85% of all internet page views take place via a mobile phone in Japan versus only 15% for desktops/notebooks. In the U.S. the number of smartphone shipments is predicted to out number desktops/notebooks by the end of 2011. Creating advertising for mobile phones along with strategic geo targeting strategies will be a must for all marketers within the next two years.
The important thing about these trends is that you start to test them and find what works for your business. We are truly entering into an era of extreme advertising opportunity created by hyper advances in technology and data. Don’t let this year go by without capturing more than your fair share of the value.
Scott Neslund
