72% Increase in video ad spend by 2012


Interactive marketing spending in the US will more than triple over the next five years, reaching $61 billion by 2012, according to a new Forrester Research, Inc. A recent report expects that a maturing perspective about interactive channels coupled with technology advances will eventually lead to interactive technologies infusing all marketing efforts, and the interactive marketing organization will dissolve.

The Forrester forecast is based in part on a survey of 344 interactive marketing professionals and their budget decisions affecting display ads, search, email marketing, online video, and emerging media (social, mobile, and advergaming). Forresters breakdown of spending includes the following:

  • Search marketing will triple in five years. Mainstream marketers aggressive use of search marketing will grow the category at a CAGR of 26 percent to $25 billion by 2012 due to the increasing costs of paid search, additional spending on optimization tools and services, and international expansion.
  • Display advertising will reach $14 billion by 2012. Display ads will be a key factor in the interactive marketing budget by having an essential supporting role for all interactive campaigns.
  • Services and integration  not volume  will drive email marketing growth. Spending will focus on improving email relevancy with analytics and data management, and will grow to more than $4 billion by 2012.
  • Online video ads will significantly increase. Growing consumer adoption of online video will result in a dramatic 72 percent increase in online video ad spending to $7.1 billion by 2012. More customer-centric online video applications will increase the mediums appeal for consumers and marketers.
  • Social media will drive emerging channels to $10 billion by 2012. Mainstream adoption will boost spending in emerging channels such as social media, mobile, game marketing, widgets, podcasts, and RSS. Spending on social media alone will grow to $6.9 billion as marketers understand how to use and measure this channel.
  • Mobile marketing will grow to $2.8 billion. As consumers become increasingly tied to personal computing handsets, theyll want to extend their mobile utility to accommodate transactions. This transition will drive mobile marketing to grow to $2.8 billion by 2012.

3dinteractive’s Head of Digital Media, Jaysen Du Plessis recently explored trends in the Australian market. Online display advertising on a whole is up 17% from Q1 to Q2, with advertising spend for the first half of 2011 valued at $39.8 million (AUD).

Video Advertising grew a whopping 32.6% in the 6 months, representing 12.6% of the overall advertising display revenues.

B&T online display

3dinteractive is an accredited member of the Internet Advertising Sales Houses of Australia (IASH) which recognises best practice among online advertising sales houses in Australia.

Speak with a member of our team about getting the most out of your online advertising spend or more on the trend in online video on

Australia: 1300 806 986 or email us on info@3dinteractive.com.au

New Zealand: 09 920 1755 or email us on info@3dinteractive.co.nz


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