1. Mission Impossible-Marketing
If you thought 2006 was tough when it came to sending emails, getting websites to display correctly, and dealing with ecommerce woes, 2007 will shape up nicely to be a marketers nightmare. 

According to Gartner, Inc. (Dec 2006) by the end of 2007, 75% of U.S. companies will be hit by viruses, malware, rampant spam, and hackers. Software and technology departments will not be able to keep up with the new threat environment because security processes and technologies haven't kept up. 

It's really not our fault.  The new threat environment that surrounds all the new marketing technology is financially motivated; targeted attacks are increasing from all around the world with automated malware-generation (hacker) kits that are touch to beat. 

On top of the method to move the marketing message, watch for additional legislation regarding privacy concerns.  Mostly spurred by people that operate outside the law to begin with.

2. Online Ad Spending Will Hit $20 Billion
Whether it's with Google, Yahoo, MSN, AOL or others, Internet advertising will continue to replace more traditional forms of advertising such as radio, TV, newspaper, and drive by billboards.

Total US spending on Internet advertising will reach at least $19.5 billion in 2007 according to eMarketer-Dec 2006. This is 19% more than total spending in 2006. This rate of growth is sharply down from the 30% or more that has been the norm for several years. However, even this reduced level of year-on-year growth would be considered spectacular for most industries. With total US advertising spending projected to grow by a mere 1.4% in 2007, the shift to the Internet is clearly set to maintain its momentum in 2007. 

The keys to success in 2007 will be in knowing what percentage of your marketing budget will most effectively yield results and making sure the online ads are managed effectively. 

3. Social Networks Go Mainstream
If you're not social networking, sharing video and tagging in 2007, you're behind the times.

Worldwide ad spending on online social networks such as YouTube, Facebook, and MySpace.com should top $1 billion in 2007.  That's up from an estimated $445 million in 2006. Fueling this growth will be factors such as international expansion, "niche" networks and Google's deal to supply search technology to MySpace. 

Dove Soap apparently got 1.7 million plus hits for its short film flight on YouTube. That's a start. But the question remains: Will YouTube advance marketing communication as radically as, say, online porn? We shall see, no doubt.

4. Mostly Hype for Online Video Advertising
If you read Fortune and a few other magazines, you will see that this prediction is going against popular opinion.  Here's why.  Internet video advertising will get more play in the press than actual dollars spent on the medium in 2007.

Projected spending on this format will total $775 million in 2007. To put this figure in perspective, remember that it represents only 4.0% of projected US online ad spending. Although marketers continue to ad online video to their marketing, the problem is there are too few places to actually use them effectively on the web.  So, if online video marketing is going to boom, expect it to happen AFTER 2007.

5. Fresh Internet Users: A 'Minority' Bigger than Canada
The number of African-American and Hispanic Internet users in the US will rise to 37 million, from 35 million in 2006. This market will continue to grow faster than the total US online population for several more years, giving advertisers with the imagination to reach out to them, fresh opportunities. (The population of Canada is 33 million.)

6. Mobile TV Arrives
Mobile TV (watching from your cell phone) took its first baby steps in 2006 with professional content. The World Cup offered a first glimpse of what the broadcasting future for mobile might look like, and in 2007 another crucial element will be added to the Mobile TV mix — user-generated content (CGC-visitors create content not companies).

Given the impact the Web equivalent of this development has had in 2006, advertisers and marketers are likely to face a dizzying array of new choices that have yet to be worked out.  So, keep that marketing budget flexible!

7. E-Commerce in the U.S. Will Cruise Past the $200 Billion Mark-Travel Takes the Lead
U.S. consumer online sales will easily pass the $200 billion mark in 2007, reaching a new record total, which eMarketer projects will be $223 billion. Online retail sales will account for $132 billion of this, with online travel accounting for $91 billion. Some of the impetus for this growth will come from existing online buyers increasing their spending.

A significant force driving online travel sales is the demand from travel-loving and relatively affluent baby boomers.

8. The Retail Power of Word-of-Mouth
The influence of consumer generated content (CGC) on US consumers' purchase decisions will continue to grow in 2007. A recent study from market research firm Compete found that consumers were more likely to be swayed by CGC than by information coming directly from brand advertisers and marketers.  Goes to show that testimonials are still a very powerful form of marketing.  Especially, when it's done in a social networking atmosphere like the web.

9. Blog Shake Out
Blogging and community contributors will peak in the first half of 2007. According to Gartner, Inc. (Dec 2006) Given the trend in the average life span of a blogger and the current growth rate of blogs, there are already more than 200 million ex-bloggers.

Consequently, the peak number of bloggers will be around 100 million at some point in the first half of 2007.  That means we should see better quality bloggers.  Which in turn will give the blogosphere more validity and bloggers more respect.

10. Video Game Downloads
Actually walk to a video store, are you crazy?  Playing or getting games over the web is hot.  So hot that digital downloading of video games will take off in 2007. 

By 2010 online gaming & downloads will account for 22% of all worldwide game software revenues according to eMarketer. Besides online stores pushing the new generation of games consoles, look for Time Warner's GameTap service to position itself as the HBO of PC gaming, focusing on original content to drive its subscription service.

How does this affect marketers?  If you know how to build Video-on-demand (VOD) you will find your skills in demand for promoting these platforms, which play on subscriber taste for instant gratification via download.  Not to mention cross-branding, sponsorships, and other entertainment marketing opportunities that will be available.

 Brought to you by Samantha Rufo , President of nxtConcepts

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