28 February 2008 | Paul Snell
The number of digital marketing deals grew last year as many buyers entered this area for the first time. 2007 also saw a large volume of "churn" as digital marketing buyers switched suppliers.
According to consultants AAR, the number of buyers reviewing or switching deals with digital suppliers increased by just over 30 per cent compared with 2006. In 2007, 95 reviews were reported, compared with 73 the year before.
Martin Jones, director of advertising at AAR, told supplymanagement.com the increase in reviews indicated firms' growing requirement for digital expertise, leading to expansion in the market.
In other marketing spend areas, the number of buyers reviewing their ad agency deals was down by 2.5 per cent and there was a big fall in the number of clients reviewing their direct marketing accounts.
And the number of buyers switching their media buying contracts remained very low, 5 in 2007, compared with 3 in 2006, despite this being an area procurement departments have been urged to target (News, 4 October 2007).
Jones added the market for new business had begun slowly at the start of 2008, as firms waited to see the impact of any potential economic downturn.