Skip to main content

Digital Media Tech Revenue will Reach $161B in 2017

Enterprise-wide implementations of audience engagement software and services for advertising, marketing, sales and services continue to increase by 5 to 6 percent every six months, reaching nearly 20 percent according to the latest market study by Technology Business Research (TBR).

Over 50 percent of enterprises are either in proof of concept or scaling up their digital technology deployments. According to the TBR assessment, digital technology is mainstream and it's already changing the way that businesses interact with their online stakeholders.

Digital Media Market Development

Traditional media continues the move to digital formats, driving a significant shift in spending. Digital native service providers -- such as Google -- are capturing billions in advertising spend as organizations pivot from traditional print and television formats into more effective online engagement.

Newspapers everywhere have suffered greatly from the shift to the digital economy. Meanwhile, TV networks and cable systems are struggling to compete as marketers invest more in mobile, online video and social advertising platforms to reach their desired business outcomes.

That said, the legacy TV industry is slowly investing in the programmatic advertising technology (ad tech) for data-driven, omni-channel marketing. In addition to infrastructure investments, TV industry stakeholders must explore new business models.

Old-school ad agencies feel the pressure of the market shift, as they lag new entrants who are capturing the huge shift to digital services. The back-end technological and cultural change management opportunities are also going to the progressive full-service digital marketing consulting firms.

Additionally, as services and platforms converge, TBR believes that it's unclear whether legacy ad agencies -- which are now making investments in technology that impact their standing -- are acting as a principal or an agent.

TBR says that along with the potential 'conflict of interest' in this scenario are transparency issues around agency management of media spending on behalf of their clients. Similar to the TV ad industry, the people-intensive ad agency business is facing market disruption as a result of digital technology.

TBR top trend predictions for 2017:

  • Digital advertising and marketing technology and services, excluding media, will grow by 23 percent year-to-year to top $161 billion worldwide in 2017.
  • Large tech vendors and digital service providers will consolidate the advertising and marketing technology landscapes.
  • Outsourcing of the marketing operations function will become an accepted alternative to in-house marketing operations capabilities where the brand retains awareness.

Popular posts from this blog

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe