Posted July 8, 2009 9:25 am by with 13 comments

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As a follow-up to yesterday’s gloomy prediction for traditional advertising spend, I have some salt to pour on the wounds:

"…cannibalization of traditional media will bring about a decline in overall advertising budgets, death to obsolete agencies, [and] a publisher awakening…"

So says Forrester analyst Shar VanBoskirk in a new five year interactive marketing forecast.

In fact, a whopping 60% of marketers plan to take money away from traditional marketing and spend it on interactive ads instead.

And, if you’re a search marketer, Forrester has great news for you! As much as 59% of that interactive spend will go towards SEO and PPC, with both niches likely to double in size over the next 5 years!

  • I find this surprising give the differences we’ve seen in ROI between PPC & SEO.

    Typically, in a thoroughly managed campaign we see 3-5 times the return for SEO vs PPC.

    I think that if enterprises understood the ROI the graph would be radically different.


    Will Scott’s last blog post..Social Media Club of New Orleans 1st Meeting

  • @Will – I’m sure the same can be said for PR versus advertising. CMOs love to spend their money based on tangible placements rather than actual ROI. 😉

  • @Andy, true, true.

    I recall story of a small local hospital CEO who insisted on prime-time placement during MacGuyver (to help place the date).

    There was almost no demographic match but … wait for it…

    The CEO always watched MacGuyver 🙂


    Will Scott’s last blog post..Social Media Club of New Orleans 1st Meeting

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  • However, SEO has a higher ROI, the results of PPC can be shown immediately. I think this is why companies prefer PPC instead of SEO.

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  • Search marketing will lead always. Natural search has strong part for a committed & in-expensive user, so SEO will be play a great role. I personally believe that market may cross above these figures.

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  • sue

    whether spending goes up or goes down, what I think is for sure is that accountability will go up! No one has money to burn or media dollars to waste. CMOs are going to be chanting “what’s the ROI?” as frequently as CFOs. Pay-for-performance advertising models will abound across channels. It’s not just about the creative — It’s about what can the creative make people DO?
    Clients who use CPA (Cost per Action) affiliate marketing models pay ONLY for the clients they actually acquire, generating true ROI on every marketing dollar invested. It’s highly-targeted, low-risk and high-performance marketing at its best.

  • Don

    PPC spending can be measured almost instantly. On the other hand, SEO is harder to quantify. The returns are different.

  • SEO is a long term activity whereas PPC gives you immediate results. However, it is a fact that both are required equally for a business to remain competitive. Search engines and internet is the biggest media to share information and hence both the activities are complementary to each other.

    George’s last blog post..Benefits of Sending Bulk SMS