Analysts from the Publicis-owned New York advertising agency ZenithOptimedia have produced new figures showing that global ad spend this year is on course to reach a total of $503 billion – an expansion of 3.5 per cent. But hardworking U.S. business development managers may be pleased to hear that ad spend on digital is set to rise from last year’s 19 per cent to 21.8 percent in 2013 (that’s $109.7 billion).
Internet and mobile do well
While internet advertising is doing well, the prize for most extraordinary growth rate has to go to mobile: with ad spend growing at 81 percent in the US market this year, mobile is expanding seven times faster than internet desktop advertising, chiefly due to the massive uptake of tablets and smartphones.
ZenithOptimedia’s North America CEO, Tim Jones, said:
“After years of hype, mobile advertising has finally arrived. Its importance will only grow over the next few years as advertisers and agencies get to grips with the opportunities it offers, and improve its ability to measure and deliver return on investment.”
The main focus of the agency’s analysis, as the canny business development manager can probably already tell, is what’s happening to advertising in the U.S., the single biggest market for advertising on the planet. And the analysis is pretty unambiguous when it comes to who’s getting the lion’s share of advertising spend: yup, at 40 per cent of the total in 2012, it’s still television, despite internet’s rise. The analysts believe this will shrink by a tiny 0.5 per cent by 2015, a trend not lost on Twitter, which is concentrating hard on growing its marketing and advertising services in alignment with the television industry.
Internet ad spend will expand further
Even so, internet spend has now passed the halfway-mark relative to TV and we could well see the gap slowly but progressively narrowing in the years ahead. And it’s certainly growing faster than any of the traditional media, according to this study: desktop ad spend is on course for an 8 percent expansion between 2013 and 2014 and a 7 per cent expansion in 2015, while display remains the fastest rising subgroup, thanks largely to the rise and rise of social media and online video advertising.
Business development managers from coast to coast will find these trends distinctly gratifying.