U.S. Total Media Ad Spend Gets Lift From Digital
Ad Projections
August 22, 2013 -- Independent market researcher eMarketer predicts U.S. advertisers to spend $171.01 billion on paid media this year, up 3.6% compared to 2012 advertising spending.
Spending growth for 2014 is expected to be close to 4% thanks to the Winter Olympics, midterm elections and the World Cup, and growth rates will hover between 3.1% and 4.1% for 2015-17.
Source: eMarketer, August 2013
TELEVISION
TV will see the largest share of paid ad spending in the U.S. for the foreseeable future, though its percentage of total spending will drop slightly, from 39.1% in 2012 to 38.8% this year and 38.2% in 2017, as spending on TV ads grows more slowly than spending on paid media as a whole.
DIGITAL
Digital media will gain the most share during the forecast period, rising from 22.3% of total spending in 2012 to nearly 25% this year and 31.1% by 2017.
Mobile alone will grow more quickly than digital as a whole; mobile is expected to account for 15.8% of all ad spending by 2017, or $31.1 billion.
Among digital formats, video remains the fastest growing—though still from a small base compared to search or banners.
Even with the rise of digital video viewership and ad spending, levels of spending on online and mobile video fall far below spending on TV. By 2017, eMarketer expects digital video spending to reach only around one-eighth of what is spent on television ads.
Source: eMarketer, August 2013
MAGAZINES AND NEWSPAPERS
Investment in print advertising continues its decline, though eMarketer sees a leveling off in 2015. Print overall will account for nearly one in every 5 ad dollars spent in 2013, but by 2017 it’s expected to decline to 15.8% of the total pie.
Magazines ad spend is expected to be flat over the forecast period while newspapers can expect a 22% decline in ad spend.
DIRECTORIES
Ad spending on print directories is expected to decline 35% over the total forecast period.
UPTICK SINCE LAST FORECAST
eMarketer forecast in June 2013 that total media ad spending would be up 3.4% this year to $170.69 billion. The revised upward revision to 3.6% was primarily a result of upward revisions to expected spending on mobile advertising this year.
About: eMarketer bases its forecast of US ad spending on the analysis of various elements related to the ad spending market, including macro-level economic conditions; historical trends of the advertising market; historical trends of each medium in relation to other media; reported revenues from major ad publishers; estimates from other research firms; consumer media consumption trends; and eMarketer interviews with executives at ad agencies, brands, media publishers and other industry leaders.
Source: eMarketer, US Total Media Ad Spend Inches Up, Pushed by Digital, August 22, 2013
