According to a recent forecast by ZenithOptimedia on the global spend on advertising, expenditures in the industry are set to grow by at least 4.8 percent this year, crossing the $489 billion USD mark. This shows a slight increase from the 4.7 percent forecast done in December last year; the upgrade is attributed to recent moves by corporations making substantial investments in marketing, and the increasing unlikelihood of a total economic collapse of the Eurozone. ZenithOptimedia also predicts a 5.3 percent increase in spending by 2013 and a 6.1 percent by 2014.
Areas to Undergo Growth
Both TV and Internet advertising are expected to undergo significant growth this year until 2014. It’s expected that expenditure in TV advertising will cross the $193 billion USD threshold in 2012, increasing by another 13.5 percent or $215 billion USD the following year.
Spending for Internet advertising on the other hand, is forecasted to grow to$88 billion USD in 2012, growing further by another 35 percent to $118 billion USD by 2014.
Other advertising platforms expected to experience growth, albeit at a far smaller rate, are cinema, radio and outdoor ads. The old powerhouses of newspapers and magazines on the other hand, will face a slow decline over the next few years.
TV Still Reigns Supreme, For Now…Internet at a Close Second
TV advertising still dominates global ad spending, with a market share of around 40 percent, which is expected to remain steady well until 2014. However, industry signs show that Internet ad spending is only set to increase up to 22 percent by 2014.
The growth in Internet ad spending is expected to be powered by display ads and paid search. Spending for display ads alone is expected to top $33 billion USD in 2012, reaching an all-new high of $48 billion USD by 2014. Likewise, paid search spending is expected to increase from $42 billion USD in 2012, to $55 billion USD in 2014.
Enforms believes the continuing growth of internet advertising is for good reason. If you want to know more, we’re just a call away.