Spending on Internet advertising is rapidly growing, according to the latest report from eMarketer and Starcom MediaVest, out today. Global ad spend online is forecast to hit US$96.8 billion by 2014, up from $55.2 billion in 2009, the Global Media Intelligence Report states.
Companies worldwide will spend nearly half a trillion dollars on advertising this year. But spending that money wisely is more of a challenge now than ever before because of the changes brought about by the growing importance of digital media," the report's summary states. "To meet that challenge, marketers need dependable data about evolving economic conditions, consumer spending patterns, media consumption habits and competitor spending levels. And multinational corporations and their agencies need to compare and contrast these trends across regions and countries.
Measured-media advertising spending fared better during the recession in Latin America than in any other region of the world. eMarketer estimates that total media ad spending declined by 1.5% in 2009 to $25.6 billion. 2010 will bring a rebound of 9.4% growth, the second-strongest increase in the world after the Middle East and Africa.
The Middle East and Africa make up a region dominated by a young and rapidly growing population. Marketers competing to reach these aspiring consumers have helped boost ad spending in the region, but the total still remains the lowest in the world, both online and offline.
In 2014, total ad spending in the Asia-Pacific region will reach $173.2 billion, according to the report. Meanwhile, North America will still have a larger overall share, at 33.8 percent, or $190.6 billion.
Thanks to a growth in consumer spending in China and India, Asia is stronger amidst the global economic downturn than the rest of the world, Bloomberg explained. Online spending in the region is expected to reach $22.2 billion, or 22.9 percent of the global total.
Key Points According to Global Media Intelligence Report:
– The global recession sped up the shift of marketing dollars to digital in large developing markets such as China, India and Brazil.
– Asia-Pacific will eventually surpass North America as the world's biggest advertising market soon after 2014.
– While the Middle East and Africa only receive 2.9% of total media spending worldwide, the $14 billion in spending estimated this year represents growth of 11.4%, the fastest of any major region in the world.
– Online ad spending in Latin America — though small compared to more mature regions — will more than double over the next four years, growing from $2 billion in 2010 to $4.2 billion in 2014.
– The aging of the large UK internet audience could be an early indicator of a trend that could lead to greater internet penetration throughout Western Europe.
– The disparate internet adoption rates throughout emerging regions like Central and Eastern Europe will make mobile an attractive option to marketers.