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Social and Online Video to Drive Global Online Ad Spend past $100 Billion in 2013
Boston, MA - June 19, 2013 - Global advertising spend was up 3 percent in 2012 reaching US$ 462 billion and is expected to grow by a further 4 percent this year according to the latest research by Strategy Analytics' Digital Media Strategies (DMS) team. The Global Advertising Forecast predicts that online ad spending will increase by 14 percent this year to $102 billion, accounting for 21 percent of global ad spending, while traditional advertising spending is expected to remain largely unchanged from 2012.
Key Findings:
- Total advertising market will surpass the half trillion dollar mark in 2014
- Online video ad spending is the fastest growing segment more than doubling over the past four years
- Central and Latin America will generate the highest growth in social ad spend at around 40 percent in 2013
- The US remains by far the largest advertising market in 2012 accounting for 34 percent of the global market, followed by Japan, China, Germany and the UK.
"While online video advertising revenues are growing fast these are dwarfed by spending on TV advertising. The 30-second slot remains unmoved by the numerous online formats emerging and represents a single, monolithic spending format compared to the relatively fragmented state of online. By 2018 we expect online video advertising will represent around six percent of annual spending on TV advertising." notes Leika Kawasaki, Strategy Analytics’ Digital Media Analyst. "The longer term growth story for online video advertising is one of the most exciting in advertising. The key issue is where will the growth come from: will spending transfer from TV or will it be incremental to existing spending?"
Advertising spending by region
Despite the ongoing decline in print media, total traditional advertising expenditure in the US grew by 3 percent in 2012 to $128 billion, boosted by strong television spending during the 2012 Presidential Elections as well as the 2012 Olympics. The US online advertising market continued to grow in 2012, surpassing $30 billion and is expected to reach $35 billion this year.
"Following a relatively lackluster year, we believe European ad spending will grow this year despite continuing economic problems across the Eurozone but particularly in Southern Europe" adds Leika Kawasaki. "Traditional ad spending declined across Europe in 2012 by 7.5 percent however we expect spending to stabilize in 2013 as we anticipate strong growth in Central and Eastern European markets."
Central and Latin America will generate the most growth this year at 12 percent year on year. In fact Brazil is expected to overtake the U.K as the fifth largest advertising market by spending this year. Kawasaki notes, "Advertising spending in Brazil is expected to rise substantially over the next five years boosted by the 2014 World Cup and 2016 Olympics."
The 2013 "Global Advertising Forecast" includes detailed regional and country level advertising forecasts segmenting traditional and online advertising into all key forms of spending across 29 territories.
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