Digital ad spend nears US$100 billion
Global – Digital ad spend is expected to hit $US98 billion in 2012, with Asia Pacific tipped as the second highest spending region, according to GroupM.
This Year, Next Year: Interaction 2012 released by GroupM, showed 2011 global internet ad spend hit US$85 billion, representing a 16% increase on the previous year and accounting for more than 17% of all global measured advertising expenditures.
North America led the pack in terms of overall digital ad spending with an estimated US$34.5 billion; Asia-Pacific came in second with US$24.8 billion followed by Western Europe with US$21 billion, according to the study.
The study is part of GroupM's media and marketing forecasting series drawn from data supplied by parent company WPP's worldwide resources in advertising, public relations, market research, and specialist communications.
The study also predicted that digital ad spend in 2012 will reach US$98.2 billion globally, almost 16% more than this year.
North America once again ranks first with an estimated US$38 billion in digital ad spend with Asia Pacific spending set to hit US$31.4 billion.
“In 2007 we speculated about a world that would be truly social, searchable, mobile, addressable and interactive and illuminated by data that could be collected and applied across all marketing functions; in 2012 that is no longer a matter for conjecture,” said New York-based GroupM Interaction Global CEO Rob Norman.
Additional key findings in the survey include the following:
Digital advertising's share of total ad investment rose from 4.4% worldwide in 2004 to a projected 18.8% in 2012.
The average percentage of consumers' "media time" spent online increased from 11% in 2006 to 19% in 2011. The absolute number of broadband homes worldwide has nearly tripled in this period to reach 500 million, and the typical country has seen broadband penetration grow by half.
Aside from general monetary inflation, ad investment growth has two main vectors: aggregate audience hours, and advertising intensity per individual. Average online advertising investment per online user doubled between 2006 and 2011. For 2011, Norway had the highest per-capita online ad investment in the study's sample--US$200.
E-commerce accounts for about 5% of global retail sales today, with instant-on devices, secure and simple payment, vouchering, and the optimization of retail for mobile serving as catalysts for growth.Consumer tablet penetration reached double digits in only three of the survey's countries in 2011: the US, Finland and South Korea. However, take-up is expected to be rapid and nine countries should reach double digit penetration in 2012.
Follow us @Marketingeds on Twitter for breaking stories throughout the day.
Have something to say? Comment on our Facebook page or contact the writer at email@example.com.
GroupM Related Stories:
- Industry mourns death of Meckoy Quiogue
- GroupM’s Menon to helm MSA
- The changing face of recruitment
- GroupM debuts mobile marketing system
- Mindshare ties up with Masscom on Unilever
- WPP brings audience buying firm to HK
- GroupM to speak at Talent Management 2013
- Puneet Arora to lead GroupM Philippines
- GroupM acquires Filmworks China
- Bessie Lee takes the reigns at WPP China
- Lower-tier cities obsessed with "face"
- GroupM: Don’t forget lower-tiered markets
- GroupM China launches mLab
- Helping HR become social
- Netbooster for WPP and GroupM
- GroupM China appoints chief of operations
- Branding doesn’t start with HR
- GroupM goes full-on digital creative
- Xaxis sets up shop in Malaysia
- China ad spend to hit RMB 440 billion