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Welcome to Interaction 2017. Each year GroupM publishes its overview and speculations on the state of digital marketing and its implications for advertisers.
In 2017 it’s challenging to discriminate digital marketing from all marketing. Consumers barely separate their digital and analog lives; little media is published in only analog form and enterprises infuse digital processes into every aspect of their organizations. A few years ago GroupM noted that “the digital ink is in the water,” it’s proved permanent. It’s probably true to say that marketing strategy and marketing services remain more siloed than consumer behavior and equally true that marketing and sales organizations remain more separated than they should be given the collapse of the purchase funnel.
Our Worldwide Media and Marketing Forecast predicts that in 2017 digital’s share of ad investment in the faster-growth world will at last have caught up with the developed world, to around 33%. The new and old worlds have contributed equally to new digital ad dollars since 2013. If we disregard print, which is negative, then in 2016 we think digital captured 72 cents of every new ad dollar, and TV 21 cents. In 2017 this becomes 77 to 17. We do not consider digital as big as traditional TV yet, with TV’s ad share largely stable at 42% in 2016 and 41% in 2017. It rode a ve-year 44% peak 2010-2014, and some of the share it appears to have shed since then is an artifact of poor measurement. 10 countries have already witnessed digital overtake TV, with a further ve expected in 2017; France, Germany, Ireland, Hong Kong and Taiwan. Digital fuels its growth by recruiting long-tail advertisers and winning share from other media. To this it now adds a serious attempt to win TV’s big-brand advertising, an endeavor which will turn as much on digital’s quality as on its undoubted quantity.
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