"Executives are responding to social media and the real impact it's having on their brands," said Terri Walter, vice president of emerging media at Razorfish.

While older generations are experimenting more online, younger early-adopters are maturing with regard to online usage. Unfortunately for marketers, that means an increasingly sophisticated, selective, and even-harder-to-reach 18- to-25-year-old consumer.

"Marketers would do well to respect the discerning nature of the 'connected class,'" the report advises.

Consumers of all ages are also demanding an increasing level of personalization, and from e-tailers in particular. To meet this demand, Razorfish suggests deploying tools such as digital in-store signage, coupons delivered via mobile devices, and interactive store floor-plans and merchandise directories.

Razorfish identifies several hot trends in digital media that one might have assumed were past their prime. For one, the budget that marketers are setting aside for paid search continues to grow. In 2008 alone, it grew to 36% from 31% in 2007.

"As the economy began to soften toward the end of the year, we witnessed a renewed focus on search because it delivers a stronger ROI than many other tactics," said Sarah Baehr, vice president and national media lead at Razorfish. "We also saw a continued shift in digital ad spending toward niche sites as clients realize the value of targeting precise audience groups."

TV--or at least a Web 2.0 version of it--also remains well-entrenched in an increasingly digital media landscape, according to Razorfish. "We are seeing the development of a long tail of television," said Walter. "TV is alive and well, but the viewing experience is moving from mass to niche in terms of both audiences and programming."

"As viewership fragments," added Walter, "advertisers must find a way to adopt their messages to smaller, but potentially more valuable, audiences."

This news story is important. I recommend that everyone read it.