Did you know that the total media spend for digital advertising in Australia has officially overtaken the spend for TV advertising? Despite charging big, big dollars for a mere 30-second slot during the NRL or AFL Grand Finals and other major events such as the Logies or Brownlow Medal, TV advertising has taken a back step to online marketing.
Recent statistics suggest that the predicted digital ad spend for 2017 is $6.18 billion, making up more than 54% of the total media ad spend this year. In fact, in the 2016/17 financial year, marketing spend on digital advertising increased by more than 11% compared to the 2015/16 financial year. Meanwhile, TV spend for 2017 is predicted to be $3.3 billion, while newspaper advertising is shrinking by as much as 5% per year.
The growing trend for digital marketing is unlikely to slow down anytime soon, with predictions pointing to online advertising spend rising to $7.99 billion by 2021, which would equate to 61.4% of total ad spend.
Why has this happened?
There are several reasons why digital ad spend has overtaken traditional advertising, but ultimately it comes down to cost-effectiveness. Marketers with a limited budget can yield far better results from advertising online. Even those with large budgets who can afford both digital and traditional advertising will see greater ROI from spending the same amount on digital ads as they would on TV.
The second reason is that more people are online and exposure to a larger audience is far more achievable. For example, there are now more than seven million Australians who subscribe to digital video streaming sites such as Netflix and Stan. In addition, it was also recently reported that there are now up to 52 million monthly visitors/users to social media channels in Australia including Facebook, Twitter, LinkedIn, WhatsApp, Snapchat, Instagram and YouTube.
Not only are more people on digital platforms now, but they are more engaged and more inclined to convert from a lead to a sale. In fact, a study conducted by Deloitte found that small-to-medium sized businesses are 1.5-times more likely to grow their revenue through the use of extensive digital engagement.
What does it mean for your business?
There’s no doubt that TV advertising still works, so we’re not suggesting that companies take their entire budget away from that and place it into digital marketing. What’s important is that businesses understand the crucial impact of digital advertising to the overall success of their marketing campaigns.
By implementing an effective and results-driven Search Engine Optimisation (SEO) strategy, combined with other more traditional forms of marketing, businesses can increase their ROI by engaging with both online and offline audiences.
How do you achieve success through digital marketing?
As mentioned above, an SEO strategy that ensures you rank for relevant keywords to your products and services will help drive more organic traffic to your website and increase revenue.
An alternative digital advertising option is Search Engine Marketing (SEM), otherwise known as Adwords. This method allows you to generate online traffic for targeted keywords, which results in more visits to your website and higher sales. SEM often requires a higher level of investment than an SEO strategy, but has the potential to get quicker and more effective results.
If you’re looking to partner with an SEO company in Melbourne to achieve great results through digital advertising, feel free to get in contact with one of our Digital Strategists today to find out more information.
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