TABLE OF CONTENTS - WSI Market Builders marketing trend report...Display Advertising Growth Will...

TABLE OF CONTENTS

Executive Summary 2

Internet Usage 3

Advertising Spend 4

Advertising by Medium 5

Internet Advertising 6

Display Advertising 7

Online Video 8

Online Classifieds 9

Paid Search 10

Email Marketing 11

Social Media 12

About WSI 14Source of all statistics:

Executive Summary

Copyright ©2010 by Research and Management

2010 – A Year of Economic Recovery

It is safe to say that 2009 was a year of economic crisis for markets all over the world. As the "R" word resonated in the minds of business owners everywhere, they began tightening their budgets to adapt to the economic challenges.

Participation in the recession is a choice, and companies must challenge themselves to evaluate their businesses and understand how they can change in order to surpass the economic conditions.

Though 2009 was a year of hardship, many believe that 2010 will be a year of economic recovery. Over the past year, Internet advertising spending in the US increased drastically, as spending through traditional advertising venues, such as newspaper, radio and television shrank. This trend is projected to continue in 2010.

The #1 fastest growing advertising channel is the Internet, and businesses need to re-invent their marketing strategies and capitalize on this medium in order to rise above the economic challenges.

This Internet Marketing Trends Report is a brief synopsis of the current online marketing activities in the US, as well as the projected trends for the coming years. Specifically, the report covers Internet usage and penetration, total advertising spending, Internet marketing spending and social media trends.

For more information about WSI’s Internet marketing services, please contact your local WSI Consultant.

WSI Internet Marketing Trends Report 2010

UNITED STATES

UNITED STATES Internet Usage



Online Activities of US Internet Users

According to eMarketer, the most popular online activity among US Internet users is search (94%)

Email is the second most popular online activity at 92%

77% of respondents said they participate in social networks while 71% said they use the net for instant messaging

Almost 60% of respondents use the Internet to read and participate in online wikis

Internet Users Growing

In 2010, the US Internet population will grow to 205.3 million users, or 66.2% of the total US population

This number is forecasted to increase in 2011 to 210.9 million (67.3% of the total population)

By 2013, 221.1 million people will be online (nearly 70% of the US population)

Current trends indicate that the Internet is now a mainstream communication medium

UNITED STATES Advertising Spend


Total Advertising Spending in the US

Though total advertising spending will decline slightly in 2010 ($163.0 billion compared to $163.8 billion spent in 2009), it will gradually increase each year going forward

Total advertising spending will reach $167.5 billion in 2012 and increase another billion in 2013

By 2014, $173 billion will be spent on total media advertising

Total Media Advertising Spending Growth

Next year, total media advertising spending is expected to grow slightly by 0.3%

Total advertising spending growth will rise again in 2012 to 2.4%

In 2014, total advertising spending will grow by 2.7%


Share of Adspend by Medium

Prior to the recession, Internet advertising consumed 10.5% of total adspend in 2008, surpassing only outdoor and cinema ads

UNITED STATES


Internet Advertising Sees the Most Growth

During the recession, traditional advertising channels saw a decrease in spending growth in 2009, as marketers moved their budgets to more measurable channels like Internet advertising, which saw an increase of 14.1%

In 2010, most channels will continue to see a decrease in growth, while Internet marketing will continue to remain the channel of choice and increase by 15.2%

Next year, outdoor and TV advertising growth will rise again, but the Internet will still see the most growth with 15.1%

Advertising Expenditure in the US by Media

In 2009, US marketers spent $20.34 billion advertising online

This year, marketers will spend $23.42 billion advertising online, and by 2011, this number is projected to reach almost $27 billion

Though TV ads still consume the largest piece of the advertising pie, Internet adspend in the US has surpassed print advertising, including channels like radio, magazine and outdoor advertising


Advertising by Medium

UNITED STATES Internet Advertising


Online Advertising Growth Remains Steady

Internet advertising spending grew by 22.8% in 2008, but declined in 2009 due to the recession (14.1% growth)

In 2010, online advertising spending growth will increase slightly (15.2%) and will remain steady for the next few years

Internet advertising spending will grow by 15.1% and 15.2% in 2011 and 2012 respectively

Internet Advertising Expenditure Keeps Rising

When reviewing the dollars being allocated toward Internet advertising, the results indicate a steady increase in spending

In 2009, $20.34 billion was spent advertising online in the US, and this year, that number is projected to increase to $23.42 billion

ZenithOptimedia estimates that by 2012, marketers will spend $31.05 billion in advertising dollars online


UNITED STATES Display Advertising


Display Advertising Growth Will Rise in 2010

In 2008, display advertising spending grew by 15%, but decreased to a mere 3% growth in 2009, as advertisers became more reserved even in the online spending

Despite a decrease from 2008-2009, display advertising will bounce back this year and grow by 7% and then remain steady at 10% growth in 2011 and 2012

Advertising Expenditure for Online Display Ads

In 2009, $4.21 billion was spent on display advertising in the US

According to ZenithOptimedia, US marketers will spend about $4.51 billion on display ads in 2010

Almost $5 billion is expected to be allocated toward display advertising in 2011

By 2012, US advertisers will spend almost $5.45 billion advertising through display ads


UNITED STATES Online Video


Year Over Year Change in Online Video Advertising

With the increased popularity of video websites like YouTube, we saw a huge spike in online video advertising in 2008

Though spending growth declined to 19% in 2009, we can expect to see a slight recovery in 2010 to 22% growth as we begin to recuperate from the recession

In 2011, online video advertising spending will grow by 20% and remain steady through to 2012

US Marketers Continue to Spend More on Online Video Advertising

As viewing online videos becomes more of a mainstream activity, US advertisers will continue allocating more marketing dollars toward this channel

In 2010, about $2.69 billion will be spent advertising with online videos, an increase from the $2.21 billion that was spent in 2009

By 2012, marketers will spend $3.84 billion producing online videos for advertising purposes


UNITED STATES Online Classifieds


Online Classified Advertising Growth Remains Steady

In 2009, classified advertising spending only grew by 3%, a considerable decline in comparison to previous years

However, much like other Internet marketing channels, online classified advertising spending will grow in 2010 (7%)

In 2011, spending growth will reach 9% and remain steady at this rate in 2012

Advertising Expenditure for Online Classified Ads

In 2009, online classified advertising spending reached $3.22 billion in the US

This year, US marketers will spend about $3.45 billion on online classified ads

ZenithOptimedia predicts that by 2012, $4.1 billion will be spent advertising through online classifieds in the US


UNITED STATES Paid Search


Paid Search Advertising Growth in the US

Paid search advertising saw only a slight decrease in growth in 2009 (20%) compared to 2008 (22%)

This year, paid search advertising growth in the US will reach 18%

Though spending growth will decline slightly in 2011, it will remain steady in 2012 at 16%

Paid search will remain one of the main online advertising channels marketers allocate budget towards

Advertising Expenditure for Paid Search Marketing

According to ZenithOptimedia, $11.20 billion will be spent on paid search advertising in 2010

US paid search advertising spending will increase again in 2011 to reach almost $13 billion

Experts predict that by 2012, US marketers will spend about $15.07 billion advertising through paid search


UNITED STATES Email Marketing


Email Advertising Spending Climbs Steadily

Though email marketing spending dropped in 2009 from 2008, it will climb steadily from 2010-2014

In 2010, $283 million will be spent on email marketing in the US

Email marketing spending will reach $302 million in 2011 and $323 million in 2012

eMarketer predicts that by 2014, $374 million will be spent on email marketing

Email Marketing and Social Media Integration

27% of respondents in an eMarketer study said they have integrated social media into their email marketing campaigns in 2010

24% said they have formulated a strategy and are researching tools for implementation

Interestingly, 18% of respondents said they plan to integrate social media and email marketing, but do not know where to start


UNITED STATES Social Media


More Internet Users are Using Social Networks

According to eMarketer, there were 70.6 million adult online social network users in 2009 (43.5% of total adult Internet users)

This year, 46.5% of the adult online population will also be social network users (77.8 million)

In 2012, more than half of all adult Internet users will also be social network users (50.5%, 89.1 million)

Activities of Social Network Users

Interestingly, 52% of social network users become a fan/follower of a company or brand on the social networks

46% have said something positive about a company/brand on the social portals, while 23% have said something negative

18% of respondents have used the social portals to promote another company/brand, and 12% have used social networks to promote their own business


UNITED STATES Social Media


Social Media Marketing Growth Remains Resilient

According to ZenithOptimedia, the recession did not decrease spending growth in social media marketing in 2009

In fact, social media marketing spending growth increased last year to 44.6% over 2008 (31.6%)

This year, spending growth will decline slightly to 30.6%, but will remain steady at 30.2% and 30.0% in 2011 and 2012 respectively

Social Media Marketing Continues to Rise

Trends indicate that US marketers are spending more money to advertise with social media

In 2010, $728 million will be spent advertising with social media, up from $558 million in 2009

Marketers are expected to spend approximately $948 million on social media marketing in 2011

By 2012, about $1.23 billion will be spent on social media marketing


ABOUT WSI

WSI leads the global Internet industry offering best of breed digital marketing solutions to suit the needs of multiple industries. The company has the world’s largest Internet Consultants’ network and a 100-person strong head office in Toronto, Canada. WSI Internet Marketing Consultants have helped thousands of small and medium-sized businesses realize their online marketing potential. By using innovative Internet technologies and advanced digital marketing strategies, businesses can have a WSI Internet Marketing System tailored to their individual needs to elevate their Internet presence and profitability to new levels. The company has held the Number 1 spot in Entrepreneur Magazine’s Franchise 500 listing under the Technology category for 10 years in a row under the technology category. With the support and cooperation of its customers, franchise network, employees, suppliers and charitable organizations, WSI aims to help make child poverty history through its global outreach program (www.makechildpovertyhistory.org). For more information about WSI’s offerings and business opportunities, please visit our website at www.wsicorporate.com.

The information herein is the property of Research and Management Corporate (RAM).

©2010 RAM. All rights reserved.

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