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Retail Growth in Online Ad Spend

By now, most of you have finished your taxes, done with the holiday travel and are ramping up for the warm spring season.  After a shaky economic climate, things might be looking up for those in retail.

According to Geoff Ramsey of eMarketer, “One way retailers are learning to keep up with consumer behavior is by investing in digital advertising. This year, they will try to hook multichannel shoppers by spending $9.48 billion on digital media, an increase of 28.7%. Paid search will represent the bulk of that investment, while display and online video ads will drive its growth.

For someone who goes on a lot of sales demos for new Mediaplex prospects and clients (Sr. Sales Engineer), I can certainly validate Mr. Ramsey’s finding that a lot of new and existing online retailers are popping up to expand their advertising budget.  The two major themes I have witnessed for retailers over the last 2 months are as follows:

  1. Brand new companies (less than 3 years old) are diving head first into display (rich media, standard display and affiliate) advertising  as they are looking to make a splash in the market as well as some branded paid search.  Many of these companies are using Google Analytics to do their tracking and are looking for an ad server to give them more cross-channel control of their buys.
  2. Established companies who primarily do only paid search and affiliate are looking to companies like Mediaplex to test more display buys so that they can do attribution studies on the lift it brings to their ROI.  Many large companies are finding success when they consolidate all of their channel data into a single data source and push for more in depth analysis.

According to eMarketer, retail ad spend is still topping the charts in the US and continuing that trend in the next couple years.  This is great news for agencies and publishers who rely on their budgets and internal media marketing managers who have more resources to work with.  On top of that, they are looking to an ad serving solution so they can be better stewards of that budget.

Categories: Industry
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