Over the past year, digital marketing expenditure has grown 44 percent to $52 billion in the US and Britain. A study estimates that global expenditure is nearing 100 billion dollars.
The growth of this industry reflects the desire for brand safety. Brands jeopardize their image when their ads appear next to unsuitable online content, such as gross youtube videos and inappropriate images posted from other users. Brands now want marketers to seek greater control over their target audiences.
The Moore Stephens survey found that “this budget is coming from media spend and will have a resounding impact on the value of media-centric agencies.” This comment refers that traditional ad agencies are finding it hard to adapt to the new era of digital and social media.
Stephens’s survey found that 63% of US tech budgets were spent in-house, compared to 44% in 2017.
On top of businesses spending more on digital marketing, brands have become weary of Google and Facebook advertising. Brands don’t like to trust other agencies with data, they want to take control of their marketing technology and data.
Overall, at this time the high-end spending brands are still working with agencies, but there is a slow shift to in-house marketing.