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  • Razorfish Outlook Report 2010: Clients are Spending More on Digital Marketing, but Not Shifting Strategy

    The digital marketing firm Razorfish recently put out its annual Outlook Report, and it pulls together some interesting data on how companies are shifting to digital outreach strategies. The key finding in the report seems to be that while the use of new media by American consumers grew exponentially between 2004 and 2009, most companies kept to the same approach in their marketing. They did spend more and more money, but the strategies were often unchanged. In fact, 70% of Razorfish clients reported not changing their tactics. This is particularly striking when one realizes, as the report points out, that many of the most popular tools and sites for consumers in 2009 did not exist in 2004 (e.g. the iPhone, YouTube). When Razorfish asked clients what adjustments they made to their digital media strategy last year, the six top responses were: More discounting in messaging; Decreases in overall budget, but with more budget shifting to digital; Scaling back in ad spends for the year or not running certain campaigns; Shifts to search and out-of-home display; Increases in overall ad budgets to grab more share; Shift in goals -- more focus on return on ad spend. Yes, there is some incompatibility with these ideas. Read the Razorfish Outlook Report 2010 here . We were alerted to the report by Marketing Vox , which has a very useful summation of the report here .
  • Twitter Has Profitable 2009, But Where Will it Spend in 2010?

    Count Om Malik among those who were surprised that Twitter had a profitable year in 2009. Not that he isn't optimistic about the social media wunderkind's current and future value--in fact, he thinks Twitter isn't charging Google and Microsoft (the companies that accounted for Twitter's revenue this year). It's just that he didn't expect the company to be in the black by now. But he does expect Twitter to start spending in three key areas next year: *New management team including several new “C”-suite executives. *Infrastructure to scale their network to accommodate future growth. *Hiring more engineers and other key people as it tries to build out the service. Which means the so-called profits are going to evaporate and the company will have to dip into its $155 million (VC) cash hoard. Even the soon-to-come commercial accounts might not be enough to make up for all that spending. Read Twitter May Be Profitable — No, Seriously! here .