PPCGlobal Digital Media Spend Forecast to Grow 18% in 2012

Global Digital Media Spend Forecast to Grow 18% in 2012

Global digital ad spend, previously expected to grow 16 percent in 2012, will actually increase 18 percent, representing a 20 percent share of total advertising spend. In 2013, GroupM analysts expect an additional 16 percent increase in spend.

arrowsGlobal measured digital media spend, previously expected to grow 16 percent in 2012, will actually increase 18 percent, representing a 20 percent share of total advertising spend. In 2013, analysts from GroupM expect an additional 16 percent increase in digital spend, according to the global media investment operation’s revised ad spending forecast in their biannual “This Year, Next Year” report.

“Internet advertising is growing in every country, so powerful is its structural and evolutionary development,” said GroupM Futures Director Adam Smith. He noted that all digital spending trends are positive everywhere, irrespective of local economic conditions.

Digital will grow markedly faster than global advertising as a whole, expected to increase 5.3 percent next year over 2012, representing $533.2 billion.

In the United States, GroupM predicts advertising investment in measured media will grow 3.6 percent in 2012, for a total of $152.5 billion. This is down from the 4 percent growth projected in their previous report, issued in December 2011.

For 2013, the new report predicted a 3.1 percent increase, for a total of $157.2 billion in spending. Political and fiscal uncertainty in the U.S. could be contributing factors in reduced spending at home, said GroupM Chief Investment Officer Rino Scanzoni.

Television advertising reached a record high last year, as a portion of total ad spend; TV accounted for 43 percent of measured global media investment in 2011. Smith said he believes this may have been the peak for TV, because “the continued development of internet advertising, notably video, will now possibly nip at TV’s nominal share, though some internet video investment will simply return to different pockets of the same TV vendors.”

This latest update from GroupM mirrors events in 2011; last summer, their revised report also predicted greater increases in digital, alongside lesser expectations for general advertising spend as a whole.

Search marketing agencies recently reported paid search continues to rise, though its growth rate is on the decline. Mobile advertising continues to grow, driven largely by tablets.

GroupM report data for the 70-country forecast is supplied by parent company WPP’s worldwide resources in advertising, public relations, market research, and specialist communications.

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