Recently comScore released its annual report on key trends in digital media, how it is changing, and how companies in all industries—ranging from healthcare to insurance to consumer and to technology—can capitalize upon key trends in 2011. Digital media looked at included e-commerce, social networking, online video, search, online advertising, and mobile.
Below are key highlights of the annual report findings and summary of the key digital media trends that companies should consider for their broader strategies for 2011:
Up nine percent vs. 2009, total e-commerce spending reached $227.6 billion in 2010. Retail e-commerce spending grew 10 percent to $142.5 billion for the year.
What this means for you: This continues to be a driver of offline buying, which means that companies should have both an online presence and understand how e-commerce drives both online and in-store purchases. New customers can be attracted with online programs, but long-term loyalty will depend upon meeting their expectations.
The momentum continued, with nine out of every 10 Internet users now visiting a social networking site in a month. The average Internet user spent more than 4 hours on these sites each month, with approximately one out of every eight minutes online being spent on Facebook.
What this means for you: While social media might not be worth significant investment for every company, businesses without a social media presence risk being left behind. At a minimum, companies should be listening to what consumers are saying, and most—if not all—should be directly engaging with them. Additionally, social networking sites now account for more than one-third of all display ads delivered online and, because ads are often priced lower than other display ads across the web, can be an opportunity for cost-effective advertising that can reach tens of millions of consumers.
The average American spent more than 14 hours watching online video in December 2010, a 12 percent increase from 2009. Additionally, they streamed a record 201 videos, an eight percent increase.
What this means for you: As online video viewing continues to draw people, video ads offer an interesting and engaging way for companies to reach their audiences, and will be an important part of online video.
Driven by a four percent increase in unique searchers and an eight percent increase in the number of search queries per searcher, the core search market grew 12 percent.
What this means for you: Both Google and Bing, which controls nearly 30 percent of the search market as a result of its partnership with Yahoo!, continue to introduce new innovations in searching. Thus far, the integration of realtime search, improved blended search results and other new search modules have enriched the search experience. The integration of social data may further enhance the quality of search results in 2011.
A total of 4.9 trillion display ads in 2010 were seen by Internet users, with display ad impressions growing 23 percent in December 2010 versus December 2009. A significant driver of growth in the display ad market in 2010 came from social networking sites, which now account for more than one-third of all display ad impressions.
What this means for you: As more companies put more of their budgets into online advertising, there is an increased demand for measurement that uses consistent data sources and holistic measurement techniques. In 2011, solutions that answer these measurement questions will be critical.
Mobile devices reached several milestones in 2010. “Smartphones” reached one in four mobile subscribers and 3G penetration crossed the 50 percent threshold. Up 8 percentage points from 2009, approximately 47 percent of mobile subscribers are now connected Internet media users (via browsers, applications or downloaded content).
What this means for you: Expect to see continued growth in the use of mobile devices to obtain real-time price and product information in support of an intended in-store buying decision and the likelihood that the information obtained will drive some of that buying activity to actually occur online. As the convenience and nearly ubiquitous nature of mobile make this platform potentially extremely valuable for advertisers, mobile advertising will also become an increasingly important component of the mobile landscape in 2011. Companies must also keep in mind that mobile media is not an extension of PC-based Internet usage, but is a unique platform.
Download a complimentary copy of The comScore 2010 U.S. Digital Year in Review report.
While innovations in digital media have brought more options to consumers than ever before, companies would be wise to focus resources on the ones that will bring the highest value to them. If you’re in healthcare, insurance, technology or other professional services industries and need help determining the right mix of social media for you, contact Scott Public Relations.
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