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