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While TV remains the king of ad spending, Interactive Marketing is predicted to overtake its throne by 2016. According to Forrester, investments in digital (this includes search marketing, display advertising, email marketing, mobile marketing, and social media) will climb to $77 billion and represent 26% of all advertising.

What role do Search and Display play in the predicted growth of Interactive Marketing spend?

 

 

 

 

 

 

 

Source: Forrester Research Interactive Marketing Forecasts, 2011 to 2016

Search will remain the key player in interactive marketing ad spend, growing to more than $33 billion over the next five years. However, as marketers explore new marketing strategies and tactics, the search market share is expected to drop from 55% today to 44% of interactive ad spend by 2016.

Forrester’s forecast also shows that display advertising has a renewed momentum, with investments reaching $27.6 billion by 2016, claiming 36% of interactive spend. While a couple of elements play into this spending boost, one that stands out is the shift of search dollars to display. Forrester claims that marketers experiencing high keyword costs in paid search will look to biddable display media as another way to drive effective and cost efficient advertising.

The migration of dollars from paid search to biddable display media will mean a lot for search retargeting.

For more information on the Forrester report, click here