Digital ad investment higher than forecast

Thu 26th of July 2012, filed under PPC

Projected figures revised

Investment in internet advertising is set to be higher than expected in 2012, according to revised projections from media analyst GroupM.

The organisation releases a biannual forecast of worldwide ad spending across all platforms, and had previously predicted that spending on digital media adverts would rise 16 per cent this year.

It has now reassessed this figure to 18 per cent, suggesting the total outlay will be in the region of $99 billion (£64 billion). This will see digital media take a 20 per cent share of worldwide ad spend.

Television remains the most popular advertising platform, taking a record share of 43 per cent in 2011. However, GroupM predicts that this may well represent a peak for TV, with the growth of internet advertising expected to take some of that total in the coming years.

The ease with which online ads can be shared could be a factor, after 250,000 people reposted the new ad for Microsoft Surface in June 2012.

Bad news for print advertising

Of course, as the internet takes a greater share of advertising investment, another outlet must see its total fall.

Print advertising is decreasing year-on-year, with newspapers only gaining 17 per cent of advertising revenue in 2011. This figure is expected to dip to 16 per cent between 2012 and 2013. Magazines have also taken a knock, registering another low of just a ten per cent share.

While different regions and platforms may be experiencing contrasting fortunes, GroupM still suggests ad spending will increase in 2013. The report, which covers 70 countries including the US and the Eurozone, predicts a 5.3 per cent overall rise in ad spending for 2013, which will take the figure to $533.2 billion (£344 billion).

However, last year it had predicted a 6.3 per cent jump in investment for 2012, before revising its estimate down to 5.1 per cent in this most recent report.

Daniel Nolan, managing director at theEword, said: "This rise in internet advertising and fall in print ad spending is unsurprising. However, the fact that digital investment has turned out to be even higher than expected should serve as a wake-up call for companies who aren't capitalising on this platform."

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