Today we released our Q1 2011 Dig­i­tal Mar­ket­ing Report. High­lights from the report are below:

Dig­i­tal mar­ket­ing con­tin­ues to show strength in the first quar­ter of 2011. While search mar­ket­ing decel­er­ated as expected off of a big Q4 2010, YoY growth remains robust at 17%. Adver­tiser demand for Facebook’s ad prod­ucts increased sig­nif­i­cantly with spend ris­ing sharply on 40% QoQ CPC growth. The dis­play ad exchanges also rapidly expanded with Effi­cient Frontier’s adver­tis­ers access­ing more than 300% more inven­tory than a year ago at 30% lower Cost Per Thou­sand (CPMs). This means that dis­play adver­tis­ers are gain­ing both reach and effi­ciency as new tech­nolo­gies like Real Time Bid­ding (RTB) become more prevalent.

The retail sec­tor was the big win­ner this past quar­ter, as retail impres­sions grew by 30% YoY, show­ing higher con­sumer inter­est in retail prod­ucts. The Finance sec­tor also fared well, grow­ing at 18% YoY. The travel sec­tor was the only sec­tor that saw a decline in spend as CPCs remained flat.

●      Retail: Spend was up 22% YoY on increased con­sumer demand

●      Travel: Spend is down 13% YoY as CPCs are flat

●      Finance: Spend was up 18% YoY on CTR gains

●      Auto: Spend was up 10% YoY on CPC gains as well as increased in con­sumer demand

Our out­look for the next quar­ter and com­ing year remains pos­i­tive. We believe that adver­tis­ers should allo­cate their adver­tis­ing spend across the var­i­ous dig­i­tal mar­ket­ing chan­nels includ­ing search, dis­play, and Face­book. Each chan­nel serves a sig­nif­i­cant yet dif­fer­ent role in over­all man­age­ment of adver­tis­ing cam­paigns. The abil­ity to man­age adver­tis­ing in a trans­par­ent cross-channel man­ner will give adver­tis­ers a leg up in get­ting con­sumer atten­tion in a mar­ket that is becom­ing increas­ingly com­pet­i­tive. Effi­cient Frontier’s pre­dic­tion is that chan­nels like dis­play and Face­book will dou­ble over the next year.

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To down­load the full report click here.


Mar­garita Golod
Senior Prod­uct Mar­ket­ing Manager