Forrester Expects Digital Marketers to Spend Almost $120B by 2021

A full-service SEO marketing agency in the U.S. would likely spend more over the next five years, as investments in online and digital media would favor quality over quantity, according to Forrester.

Shar VanBoskirk, Forrester vice president and principal analyst, said that digital marketers in the country would spend almost $120 billion by 2021, driven by their planned investments in paid searches, email marketing, and display, online video and social media advertising.

Bigger Budget

Higher spending power among millennial consumers serves as one reason behind the expected increase in digital marketers’ budgets, according to VanBoskirk. Consumers between 18 and 35 years old have been accustomed to spend more, amid their plans to raising a family or establishing careers. This demographic also emerged as the biggest consumers with a collective spending of $600 per year.

Coforge Marketing noted that since Millennials are known to be tech-savvy, digital marketing companies decided to increase their spending plans to foster a better relationship with them. For advertisers, online video has been their focus as their spending rose 114% since 2014. The trend of spending more could be beneficial, especially if you are losing clients due to poor online marketing.

Better Marketing

SEO marketing allows your business to lure new clients, but an ineffective strategy could do the opposite. Many companies have focused on landing on top of search engines that they lose sight of the customer’s needs.

E-mail marketing can also backfire when your automated system inadvertently fills the inboxes of prospective clients. This practice has rarely provided any good results, as most people would simply mark your messages as spam. As Forrester indicated, your campaign should focus on the quality of content.

The higher spending plan of digital marketing companies reflects the growing use of online channels for many businesses. How do you plan to incorporate digital marketing into your company’s strategic growth plan?