Home  › Media › Mobile

Mobile Spending Leads Direct Marketing Growth

  |  October 3, 2011   |  Comments

Direct Marketing Association predicts mobile direct marketing spend to grow 51 percent this year.

Spending on digital marketing will be led by mobile, according to the latest edition of the Direct Marketing Association's biennial report. The trade group predicts mobile direct marketing spending to grow 51 percent this year and 39 percent in 2012.

Together the DMA projects spending on digital direct marketing will hit $31.3 billion this year and $35.4 billion in 2012. The total encompasses online search and display, social networking, mobile, commercial email, and other forms of digital channels such as rich media and advergaming.

The group said digital channel expenditures will account for 21 percent of direct marketing budgets in 2012, up from 19 percent this year. The DMA's "Power of Direct Marketing" report, released yesterday, measures U.S. direct marketing activity.

Spending on social networking by direct marketers will also grow substantially this year and next, according to the report. It will reach $2.5 billion this year, growing 27.4 percent; in 2012 it will hit $3 billion, growing 19.6 percent year-over-year.

Search and display spending account for the largest portions of digital media spending by direct marketers. The channels will maintain growth, but will slow in 2012, according to the DMA. Both channels are set to rise 18.3 percent this year, with search reaching $14 billion and display $8.5 billion. Search growth will taper to around 12 percent next year, hitting $15.6 billion; display is expected to increase by 11 percent in 2012 and reach $9.5 billion.

By comparison, the Interactive Advertising Bureau reported that display ad revenues came in at $5.5 billion in the first half of this year, an increase of 27 percent over the same period of 2010. Typically, online ad spending increases in the second half of the year, suggesting the IAB and DMA may be in sync considering the IAB tracks brand advertising spend in addition to direct marketing spend.

Mobile still only makes up a sliver of the digital pie. The DMA predicts mobile spending will reach $900 million this year and hit $1.2 billion in 2012.

Meanwhile, as digital channels experience double-digit growth through 2012, traditional channels such as direct response TV and direct mail will grow at single-digit rates.

Tags:

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

Kate Kaye

Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

Jobs

    • Tier 1 Support Specialist
      Tier 1 Support Specialist (Agora Inc.) - BaltimoreThis position requires a highly motivated and multifaceted individual to contribute to and be...
    • Recent Grads: Customer Service Representative
      Recent Grads: Customer Service Representative (Agora Financial) - BaltimoreAgora Financial, one of the nation's largest independent publishers...
    • Managing Editor
      Managing Editor (Common Sense Publishing) - BaltimoreWE’RE HIRING: WE NEED AN AMAZING EDITOR TO POLISH WORLD-CLASS CONTENT   The Palm...