A new forecast has predicted that American advertisers will increase their digital marketing spending this year to the extent that it looks like it will overtake the amount spent on print. US firms will spend $119.6 billion on internet advertising this year, compared with $111.5 billion on magazine and newspaper-based promotions, according to Outsell 9a US and UK research and advisory firm focused on the publishing and information industries)

This will not come as a huge surprise to many people, even those traditional marketing agencies who make their money from paper based communications. It is well known that the average cost of a letter costs somewhere in the region of $1.20 while the cost of an eDM (electronic digital mail) can cost as little as 5 cents. Also, paper based communication is a form of ‘fire & forget’ in that you have no idea who opens it, reads it, what they do with the information…. and so on. So why (when it is so obvious) do we persist with paper based communications. Well to a SMALL degree, some individuals still like the ‘ink on their hands’ but to a far greater degree, there is an enormous industry out there that is heavily reliant on the margin that a paper letter offers $1.20 v 5 cents. It doesn’t take a genius to work out why lots of paper is still out there.

The only people who have any influence over this (and can change the pattern) are the marketers and believe me when I say that the tipping point is coming. The popularity of digital marketing courses, seminars, education conferences is in hot demand. Oh, and don’t take my word for it, have a look at what is happening out in the real world when it comes to paper v’s digital communications….

The company suggests that this due to advertisers seeking more accountable methods of marketing. Its survey reveals that advertisers see their own websites as offering the best return on investment, followed by conferences and other trade events, direct mail, search engine marketing and email newsletters.

When it comes to social media marketing, Facebook came out on top as the medium believed to be the most effective, with LinkedIn and Twitter coming next in the rankings. Chuck Richard, vice-president and lead analyst at Outsell, remarked: “Advertisers are directing dollars toward the channels which generate the most qualified leads and most effective branding.”

The study comes shortly after Forrester Research launched a report suggesting that spending on business-to-business online marketing will rise by more than 100 per cent by 2014.

Anthony Quigley