FRANKFURT (Reuters) – Spending on digital marketing grew by 44 percent last year in the United States and Britain to $52 billion, a study has found, estimating that global outlays on such tactics are approaching $100 billion.
FILE PHOTO: A man uses a smartphone in New York City, in this picture taken November 6, 2013. REUTERS/Mike Segar/File Photo
In contrast to placing online ads through intermediaries, digital marketing, or “martech”, has the appeal of enabling brands to target consumers directly via social media, search-engine optimization or voice-activated assistants, such as Amazon’s (
The issue of ‘brand safety’, which can be jeopardized when ads appear next to unsuitable online content, has also frustrated marketers and encouraged them to seek greater control over how they target audiences.
“Clearly marketers are seeking to build in-house strength and are set to spend more on martech to remain competitive,” said study author Damian Ryan, a partner at UK accountancy firm Moore Stephens.
“Our research finds that this budget is coming from media spend and will have a resounding impact on the value of media-centric agencies,” he added, referring to traditional ad agencies that are struggling to adapt to the digital era.
The Moore Stephens survey, conducted with advertising and media consultancy WARC, covered 800 companies in North America, the Asia-Pacific and Europe.
It found that brands in Britain and North America spent 23 percent of their budgets on martech, up from 16 percent a year ago. And 63 percent of U.S. technology budgets were spent in-house, compared with 44 percent last year.
Tough European data protection rules that took effect in May, as well as concerns over the data practices of search giant Google (
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