According to a recent report by Salesforce, Google and Facebook account for 58% of global digital advertising budgets.
The report, titled Digital Advertising 2020 and encompassing a sample of 900 digital advertisers (from 10 different countries), outlined a number of key trends relating to how marketing and advertising budgets are being directed.
Interestingly, and despite the prevalence in regarding digital marketing as a subset or distinct branch of marketing across large corporations, a majority of companies – 59% – continue to merge digital advertising and marketing budgets.
This could also suggest an increased reliance by organisations on ‘hybrid digital marketers and advertisers’, or personnel who are as comfortable working with social media and marketing automation as they are with SEM and digital analytics – a ‘jack of all trades’.
The report also highlights the increasing importance of implementing effective CRM solutions within advertising and marketing departments – some 94% of marketers now turn to their organisational CRM when it comes to leveraging data to improve their targeting efforts.
This said, advertisers are also becoming more reliant on second-party data to inform advertising campaigns and strategy – the report states that, in two years, second-party data will be used by 64% of all digital advertisers.
Despite all of this advancement and change, advertisers still list ‘impressions’ as the second most important metric for evaluating performance; top of the list of important metrics is the illusive ‘lifetime value’.
Marketers and advertisers are also becoming more technical in how they monitor performance; while 42% still utilise spreadsheets to measure effectiveness, the report states that some 55% now utilise data management platforms.
What does the prevalence of Facebook and Google on advertising and marketing budgets tell us? Well, without placing too much emphasis on the opinion of 900 senior digital advertisers, it signals that 2018 is likely to be another year where tactics come before strategy.