Digital marketing is booming in Austin, but its going to cost more
Digital marketing for businesses and consumers is booming across the US, according to a new study.
The report from consulting firm Concurso Marketing found digital marketing costs $2.3 billion per year in the Austin-based city, but that number is expected to grow to $4.2 billion by 2021.
“We are seeing a huge amount of investment from businesses and brands in Austin and the state of Texas,” said Concursono CEO Joe Mancuso.
“And I think the big question is how to scale the efforts that we are seeing, to make sure that those investments are being directed towards the things that really matter most.”
Concurso Market Research said digital advertising and marketing spend in Austin is expected be $2,939 per capita by 2021, which is $1,000 more than the $2 million per capita figure in San Francisco.
Mancuson said the report shows the importance of local businesses investing in digital marketing, because the more people that shop online, the more likely they are to shop at local businesses.
The study, which surveyed about 1,000 business owners and retailers, also found that about half of Austin’s retailers said they have purchased or are considering buying digital marketing services, with almost half of respondents saying they had invested in a digital marketing company.
Mannix’s Austin store is among the most popular in the city, with over 40% of customers saying they visited it regularly.
But the store was not among the top 20 most popular places to shop for online shopping in Austin.
“A lot of businesses that are looking to add online retail to their business models, that are going to be impacted by these new regulations, whether it’s online or offline,” said Mancoso.
He said Concreos report suggests Austin is a great place to start.
“You can have great sales and great customer service, but it also can be a great way to make money,” he said.
“In terms of the local business, you know, you’re talking about having a good customer base, you have great employees, you are in the suburbs, you want to be in the downtown area.
And you can afford to buy a big-box store and put in a big display.”
Mancoson said Austin is becoming more of a digital shopping destination, which means it has become a destination for those looking to purchase digital products.
“The fact that Austin is able to grow so quickly in terms of spending and digital revenue, is something that we have been watching closely,” he added.