Tuesday, March 29, 2011

By 2015, Digital Strategies, Such as Social and Mobile Marketing, Will Influence at Least 80 Percent of Consumers' Discretionary Spending

A digital marketing approach and its associated channels are critical for overcoming the declining effectiveness of mass marketing, according to Gartner, Inc. Although marketers have been using digital channels as part of their campaign management strategies for more than 10 years, most are using them for traditional push, mass-marketed, interruption-type execution of campaigns rather than a two-way engagement approach.

Gartner analysts said that this evolving customer-focused strategy harnesses digital techniques and channels that will increase engagement, response and conversion rates.

The online environment continues to expand, and marketing organizations have more opportunities to be effective. By 2014, 6.7 billion devices will be connected to the Internet. Mobile marketing in the U.S. reached $877.2 million in 2010, up 138 percent from the $368 million spent in 2009. The developing social CRM application market reached $600 million in 2010, and it is expected to reach $1 billion by 2013.

Gartner's operational definition of digital marketing includes addressable branding/advertising, contextual, marketing, social marketing and transactional marketing. Digital marketing extends the marketing process through channels such as the Web, e-mail, video, mobile applications and social applications, point-of-sale terminals, interactive television, digital signage and kiosks.

Although digital marketing represents an opportunity for two-way engagement, digital channels, access to a customer view and precise attribution metrics, campaign management represents multiple processes and channels, online and offline integration, and a complete customer record. Going forward, marketers will need to consider campaign management as a way to orchestrate the complexity of a complete online and offline marketing strategy, while incorporating the evolving customer approach of digital marketing.

More information on CRM can be found at www.CRMindustry.com.

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