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B2B online ad spend to double by 2014
US spending on B2B online marketing will more than double to USD4.8bn by 2014, according to a report from Forrester Research. The study says the majority of that growth will come from paid search, although B2B marketers will also increase spending on display advertising and social and mobile marketing.
"The recession has hastened the adoption of interactive marketing in place of traditional offline methods which are now seen as expensive compared to measurable, ROI-driven online channels," says report author Michael Greene. "And B2B marketers are particularly likely to shift money from other channels to the online medium."
The figures show that B2B marketers are still highly focused on channels such as paid search, where spending can be easily controlled and results effectively measured. Paid search accounted for 70% of marketers' entire online ad budget last year and spend is set to increase to more than USD3bn by 2014, up from around USD1.8bn last year. While display advertising fell 9% year-on-year in 2009, Forrester expects the sector to bounce back this year.
"Even with a short-term spending decline in 2009, display advertising will grow faster than any other established interactive category from 2009 to 2014," says Greene.
Social media will also emerge as a key platform for B2B marketing over the next few years, in particular because B2B firms have always had to develop strong relationships with new and existing clients. Forrester forecasts that the sector will grow fivefold from USD11m last year to USD54m by 2014. Mobile marketing is anticipated to rise from USD26m to USD106m.
"Traditionally conservative B2B marketers are beginning to see the benefits of investing in social marketing, especially through the use of exclusive communities and online events," says Greene. "Even now social media's impact far outweighs its current budget figure."
