The online marketing space is drifting from traditional form to digital and the Internet is driving that switch, according to Google head of technology A/NZ, Tony Keusgen.
Keusgen made his comments during a keynote session detailing the trends and techniques in the online marketing space at CeBIT 2011 in Sydney.
The aim of the session was to analyse the opportunities and risk associated with evolving technology and ways to maximise its benefits.
Keusgen stated that digital media will grow from $2.5 billion to $2.9 billion, up nearly 20 per cent this year. By the end of 2014, it will be worth more than $3.9 billion – surpassing television for the first time.
He said, “We’re adopting mobile technologies at a faster rate than anyone predicted. Half of all new Internet connections come from mobile device, smartphones will overtake feature phones this year and data usage is already passed voice usage on phones.”
However, with media consumption growing at a large rate online, it is still the last line in the media plans of many businesses.
“We need to consider should we turn the Internet off, how will that impact business? It’s really the fundamental underlying infrastructure and foundation of the growth of economies today,” he said.
By 2015, Google is expecting five main trends to arise:
- The small screen will become bigger – 80 per cent of all screen time will be digital
- Mass mobile growth with 10 million mobile subscribers and 300 million Internet-enabled television users – who will spend half their screen time on social networks, user-generated content, citizen journalism and blogs.
- All retailers will go mobile with consumers trusting and adopting peer recommendations and social branding over advertising, which eventually blurs the lines between online and offline consumer purchasing patterns
- The demand for more real-time information capabilities will increase along with the desire for improved advertising efficiencies
- Display advertising will rise with growing usage of sites such as YouTube and it will play a key role in selling and customer service.0l>
But, according to Keusgen, the fundamentals of marketing remain the same. As Google adopts a philosophy of ‘mobile first’, he suggested businesses should embrace the mobile environment to deal with the trends.
“This is not something that’s coming this is something that’s already here,” he said.