Australian marketers have revealed a dramatic shift in where their marketing dollars are spent, with just one-sixth of marketing budgets now going towards any form of traditional advertising.
Unsurprisingly, the bulk of marketing budgets are spent on digital advertising. However the extent of this spend, and a breakdown of what that money is buying, have revealed some key insights for business owners trying to compete in the online world.
Research by commerce marketing firm Criteo found that within the next four years, a massive 87 per cent of all marketing spend will be on digital, with television and particularly print continuing to fall out of favour.
In 2017, paid display advertising was the most popular form of marketing spend, accounting for 17.6 per cent of all spending. Social media marketing was the second most popular, accounting for 16.5 per cent.
Meanwhile traditional advertising options — including print media, direct mail, television and radio ads — combined accounted for just 12.4 per cent of spending.
In fact, in just three years, online ad spending has surged from 36.2 per cent of total ad spend in 2014 to 44.8 per cent in 2017.
“The way we shop is changing, and so is the way marketers need to work for acquisition, conversion and retention,” said Pressy Sankaran, head of Criteo ANZ.
“Today’s ANZ shopper is an omnichannel shopper — they’re browsing and buying across all environments and are more active on smartphone than ever. In fact, advertisers with a shopping app generate 66% of transactions on mobile devices.
“Marketers who are behind on embracing marketing for mobile are missing out on crucial customer landscape and are instead investing solely in acquisition campaigns that are expensive and inaccurately targeting the right consumers.”