Citigroup Analyst Neil Doshi revealed in his keynote on Thursday at the Search Insider Summit why mobile, TV coming online, Facebook, cloud services, local ad markets, and digital goods will become long-term online advertising growth strategies for online advertising.
Doshi discussed a Citigroup survey of U.S. and European CIOs who plan to invest in some sort of cloud service within the next 12 months. The services will likely be supported by companies such as Google, Akamai, Amazon, and Apple. These strategies have mostly emerged as small services, conducted on a trial basis.
And as Doshi said, it comes as no surprise that security remains the greatest concern regarding cloud services. Demonstrating the focus on cloud services, IBM on Thursday said it would acquire DemandTec for $440 million in cash.
The deal is intended to accelerate IBM’s Smarter Commerce initiative with new cloud-based, analytics software that can help retailers improve price, promotion and merchandising strategies supporting customers. Extending these capabilities to the cloud with DemandTec should give organizations quick access to consumer information at a low cost -- providing instant return on investment, according to Big Blue.
More than 450 global customers rely on DemandTec across retail, consumer goods and other business-to-consumer industries, including Best Buy, ConAgra Foods, PETCO, Home Depot, and Target.
Brands will also continue to focus on local advertising and search services. Each year for the past 10 has demonstrated the potential to become the year for local advertising -- but it never really panned out, Doshi said, until a "large, local daily deals company" emerged and showed how to drive traffic to local businesses.
Groupon has managed to reach $1 billion in revenue faster than any other Internet company in the history of the Web, Doshi said. Local daily deals can be instrumental in helping brands tap into local markets.