DMA predicts digital marketing channels will command greater share of budgets
Published June 29, 2010
The advertising industry is shaping up to bounce back tremendously in 2010, reports the Direct Marketing Association. Additionally, the DMA observed that digital marketing channels are driving that growth.
The DMA study shows that in the first quarter of 2010, many businesses are seeing increases in revenue, marketing expenditures and profitability compared with both the previous quarter and the first quarter of 2009. The DMA attaches rising revenues to increased accountability and technical innovation.
Meanwhile, digital channels are accounting for the top slots of new marketing expenditures. Internet marketing services, such as email, social, search, online display and mobile advertising, led adoption rates among many businesses.
"Marketers have begun to spend more on marketing as sales and profitability increase, and most of this increased spending is going toward digital channels," said Yoram Wurmser, DMA research manager. "If you look at the channels for new investment, they're all digital ... The same five channels had the largest increase in ROI."
Mobile display ads have been found to be especially effective among consumers. According to a recent report from ABI Research, mobile advertisements have click-through rates of nearly 30 percent.