Where do advertisers put their money these days?
As it turns out, advertisers are loco for local.
“Local advertisers are spending plenty on digital advertising campaigns, yet it’s only a fraction of what they spend on digital marketing services, which includes things like web hosting and online, mobile, and social media management,” according to a post at MediaLifeMagazine.
According to a just released report from Borrell Associates, small- and medium-sized businesses are expected to spend $95.4 billion on digital advertising this year, or less than a fifth of the $501.4 billion they’re expected to spend on digital marketing services.
They’ll spend another $133.9 billion this year — on digital promotions, including marketing like contests, giveaways, special deals, and coupons.
Altogether, local advertisers represent a $730 billion digital marketplace.
“Put another way, digital marketing services will account for 68.6 percent of digital expenditures among small and medium-sized businesses this year, compared to just 18.3 percent for digital promotions and 13.1 percent for digital advertising,” MediaLifeMagazine explains. “Within that large digital marketing services area, more than half, $270.58 billion (54.0 percent), will be spent on web presence, with $66.87 billion spent on digital ad production, $59.28 billion on digital marketing support, $53.61 billion on online public relations and $51.01 billion on digital consulting research.”